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Crypto regulation remained the hot topic since the burgeoning financial asset growing popularity brought wide acceptance and adoption. Many financial authorities and regulators seek to regulate the decentralized markets. Famous American entrepreneur and former stockbroker Jordan Belfort also voiced for the crypto regulation to be good.
During a recent interview, the ‘Wolf of Wall Street’ went on to share an instance. He mentioned about his losing up to 300,000 USD worth crypto assets in a hack. This makes him think that crypto regulations are crucial for safeguarding investors and users from such mishap.
Belfort explained that he does not keep his assets over the crypto exchange platforms. His all the crypto holdings are kept in Ledger’s cold storage wallet. He recalled an instance from last year when his MetaMask crypto wallet got hacked. The entrepreneur ended up losing about 300,000 USD worth of assets.
Crypto is quite a tough industry for the time being and it literally resembles the Wild West, he added.
Bitcoin Will Thrive After Regulations – Belfort
While explaining the positives of crypto regulations, Belfort said that major cryptocurrencies like bitcoin (BTC) and Ethereum (ETH) are more likely to flourish with regulation. He said that the market is in desperate need of regulation, stepping in of the US SEC like institution. This way the chaotic environment all around the crypto might get into some order. The frauds would still stay as they always remain in every market, he added.
The former stockbroker mentioned the use of cold storage crypto wallets to store crypto assets rather than hot crypto exchange wallets. And also noted the FTX collapse like instance could be controlled after crypto regulations.
Following the recent crypto exchange collapse with FTX filing for bankruptcy, the skepticism of keeping assets with the exchange increased. FTX announced halting of withdrawals at the start of November and later went on to file for bankruptcy. This made a lot of customers’ funds stuck with the crypto exchange.
Citing this as another recent example, experts suggest crypto users and investors prefer self-custody wallets to keep their assets.
Earlier Belfort reported to accuse founder and former CEO of FTX, Sam Bankman Fried, to plan the collapse of top crypto exchange. He used the term ‘frat house’ for the operations at the exchange. And he said that SBF planned the FTX collapse beforehand.
Furthermore, the entrepreneur also shared several investment strategies given the ongoing crypto market volatility. He widely suggested keeping the investment within a longer time frame when it comes to bitcoin (BTC) investment. He also said to refrain from panic selling of top crypto assets.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
