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Regulation is a very healthy thing for the industry as a whole
- Regulation weeds out the bad players
- The crackdown is a good thing for the industry in the long term
- Regulatory pressure is increasing and is stronger than before
Crypto billionaire Wu Jihan said that bringing cryptocurrency under regulatory scrutiny is a good thing for the industry. We went on to say that regulation is a very healthy thing for the industry as a whole because it weeds out the bad players and gives a facelift to the industry’s image.
Talking to CNBC on Tuesday, Wu Jihan said that the recent flurry of regulatory activities must be viewed from the proper perspective, and it will improve the health of the industry in the long run. It will also preempt the entry of dubious players who give a bad name to the industry.
The scrutiny of cryptocurrencies had a bearing on investor sentiment
In recent times there has been an increase in scrutiny of cryptocurrencies dealings by regulatory authorities. It had a bearing on investor sentiment, pressuring cryptocurrency prices. However, Wu feels that the crackdown is welcome and termed it a good thing for the industry in the long term.
Wu was on the sidelines of the Asia Tech x Singapore conference. Wu, who is also the co-founder and chairman of the digital asset financial services platform Matrixport, said that regulatory actions weed out harmful elements and help genuine players compete in a healthy atmosphere. However, Wu did acknowledge that regulatory pressure is increasing and is stronger than before.
According to Forbes, Wu is also the former CEO and chairman of bitcoin mining giant Bitmain and his net worth was estimated to be $1.8 billion as of November.
The cryptocurrency sector prides itself as a decentralized finance sector that runs on blockchain technology. However, anonymity is proving to be its Achilles heel. Cryptocurrency is indicted for being a haven for money laundering and even terrorist financing.
Recently Colonial Pipeline faced a ransomware attack by hackers sitting in their remote and safe locations, and Bitcoin was demanded as a ransom. Hence, there is a section of experts demanding that cryptocurrency be brought under some form of regulatory exercise.
We concluded by saying that the crypto industry is a burgeoning financial segment and growing to a trillion-dollar market cap industry.
Already 10% of the United States citizens have got some involvement with cryptocurrency.
Regulatory activism has a significant impact on investor sentiments and has put pressure on cryptocurrency values. For example, Bitcoin had surged to record heights in April 2021 but later tanked and is today at 50% value in its bullish run in April. In addition, several negative comments by prominent people, including U.S. Federal Reserve Chair Jerome Powell, called cryptocurrencies “vehicles for speculation” has weighed heavily against cryptocurrency’s image.
Major cryptocurrency hubs like China had already started taking harsh measures in 2017, and it culminated this year with the shuttering of all Energy-intensive crypto mining operations. It also instructed significant banks such as the People’s Bank of China not to provide services related to cryptocurrency activities.
Singapore’s- the hub of the crypto innovations
Wu added that while the U.S. and China had increased scrutiny of cryptocurrency transactions, countries like Singapore, where Matrixport is headquartered, is a world financial center that is also amenable to innovation in financial technology. Wu described Singapore as a perfect place to build a worldwide financial service brand.
According to The Financial Times, Wu and his company are just one of the many other cryptocurrency organizations that are also seeking shelter in the island nation. We credited the government of Singapore for the island nation becoming the hub of crypto innovations. The government is reasonable, very high efficiency, and is approachable, said Wu.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
