Kevin O’Leary, chairman of O’Shares Investments and a judge on the hit television show “Shark Tank,” has warned cryptocurrency exchanges to get on board with regulation if they want to avoid regulatory scrutiny.
What he has to say
Speaking in a recent interview with TraderTV Live, O’Leary expressed his concerns about the cryptocurrency market, the recent FTX crash, and the impact of unregulated cryptocurrency exchanges on the broader market.
O’Leary has attributed the recent regulatory crackdown on the cryptocurrency industry to the FTX crash that occurred in November 2022. The crash resulted in a loss of over $150 million and had a significant effect on the broader cryptocurrency market.
According to O’Leary, US lawmakers are “fatigued” and “pissed” with the cryptocurrency industry after dealing with one blowup after another. They are now more likely to be ruthless with companies that do not comply with regulations.
O’Leary emphasized that cryptocurrency exchanges need to comply with regulatory requirements to avoid being targeted by regulators.
You got to get on board with regulation. You got to stay out of the way of Gensler at the SEC and other regulators.Kevin O’Leary
The macho males in Washington are clearly not having a good time. The bear was sleeping until FTX prodded it; now that the animal is awake, it is furious.
In addition, he said that the recent action taken by the SEC against Kraken for the sum of $30 million ought to serve as a wake-up call for the sector to comply with rules.
Kevin O’Leary predicts that regulated trading platforms will be better investments than unregulated counterparts in the next few years, as regulators crack down on the cryptocurrency industry.
He said that he believes the value of regulated exchanges is likely to increase over the next several years, but the value of uncontrolled exchanges is either going to be eliminated by regulators or will be reduced to zero.
Kevin O’Leary’s personal Experience
O’Leary recently revealed that he had lost nearly 100% of the $15 million FTX paid him to be its official spokesperson. Despite admitting that FTX was a “bad” investment, the Canadian businessman has continued to defend former FTX CEO Sam Bankman-Fried, claiming that the controversial figure should be treated as innocent until proven guilty.
He added that he wouldn’t rule out investing in the failed entrepreneur again. Kevin O’Leary concluded that regulations, including “massive fines,” are deterring prospective crypto investors, and the venture community has moved on to the next big thing, AI.
Nevertheless, he remains optimistic about the future of the cryptocurrency market. As investors become more concerned about regulation, he predicts that regulated exchanges will become more valuable.
The US senators are tired of gathering every six months after a crypto project blows up, and the regulators are being applauded by the congressmen and women who are saying, “What is this? We’ve had enough of this stuff.”
The cryptocurrency business need to take this into consideration and collaborate with the regulatory bodies in order to secure a prosperous future for the sector.