How the cryptocurrency market should be properly regulated: answer from the head of cryptocurrency exchange FTX
Sam Bankman-Fried, CEO of one of the biggest crypto-exchanges, FTX, gave his opinion on the market’s most promising blockchains the previous day. But the conversation with the billionaire entrepreneur didn’t end there. In the same interview, Sam touched on another important topic: the regulation of digital assets. In his view, the ecosystem being shaped by regulators is now “walking on a knife edge. What did he mean by that? We tell you more about the situation.
Note that Sam did share an opinion on the most promising blockchains the day before. In his opinion, they are the Solana and Avalanche networks, which have seen serious growth in 2021. In addition, Bankman-Fried noted the potential of wrapped tokens based on other blockchains. Read more about the billionaire's views in a separate article.
How should cryptocurrencies be regulated?
The question of regulation concerned Bankman-Fried himself just a month ago. Recall that as head of one of the industry’s largest platforms, he spoke to the US Congress in December about the prospects and challenges of digital assets. At the same time, in a short interview, Sam admitted that the main event of 2021 for him was precisely the start of the infrastructure for regulating the crypto market.
Once again, the billionaire shared his views on the activities of regulators on the gm podcast from the news outlet Decrypt. Here is one of his quotes in which Sam shared his view of the current situation.
It’s been very interesting to be at the forefront of the crypto industry and to see the shaping of the digital asset regulation process and every part of it. The ecosystem of crypto control is in a sense balancing on a knife edge, in many ways it will have a strong impact on the industry as a whole.
Which means the billionaire believes that regulation of the digital asset niche will intensify in the future. In addition, it is an area that will determine the future of the industry and its current form after a certain time.
Sam Bankman-Fried, Head of FTX
It’s worth noting that the FTX exchange moved last year from Hong Kong to the Bahamas, where regulators are more tolerant of crypto. Here’s what Sam thinks about it.
The Bahamas does have an established infrastructure for cryptocurrency regulation. There are very few places like this on Earth right now. Almost every region of the world is in a state of uncertainty or disarray on this issue.
Incidentally, the report on the state of the crypto market in Congress did not leave any negative impression on the billionaire.
I have always felt a bit patriotic – I think that is the right word. I am even more of a patriot than I would have imagined before.
Sam considers his interaction with the US Congress a very “fruitful experience”. In his opinion, the meeting definitely had a point, if only to give the country’s officials a general idea about the state of affairs in the crypto market. Recall that among them are active Bitcoin supporters like Senator Cynthia Lummis, who has repeatedly stated the great promise of the digital asset industry.
US Senator Cynthia Lummis
Read also: At least five members of the US Congress own cryptocurrencies. How much investment are we talking about?
Bunkman-Fried hopes the US will become more ‘warm’ towards crypto over time. The expert continues.
For the past four years, most of the flow of funds in crypto has been through offshore due to cryptocurrency regulation issues. I am cautiously optimistic, and I want to emphasise exactly “cautious”. Things could actually go in the opposite direction to what we expected. I would not be surprised if within the next year or two, crypto regulation becomes clear to the point where the share of crypto transactions offshore increases at least threefold.
Crypto will still reach new heights!
In other words, if global governments want to “keep” the crypto industry on their radar, they shouldn’t push too hard on Bitcoin or altcoins. Banning and cracking down on crypto everywhere will simply shift a huge chunk of financial flows into the shadow sector, thus creating another headache for governments.
We believe that Sam Bachmann-Fried's prediction will turn out to be true, and that regulation of the digital asset industry will indeed become more active in the near future. Still, the coin niche continues to grow at a crazy pace, with more and more people getting involved with various blockchain projects. Naturally, the authorities won't want to leave the industry to its fate once again, so they will take care of creating regulations for the entire cryptocurrency infrastructure.
What do you think about it? Share your opinion in our Millionaire Crypto Chat. There we will talk about other topics related to the decentralisation and blockchain industry.
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