TL;DR Breakdown
- Jihan Wu believes regulation is good for crypto
- Wu says regulation would give crypto industry a good outlook
- Crypto world faces multiple crackdown in recent times
Contrary to popular opinion that regulatory crackdown is negative for the crypto industry, Jihan Wu, the founder and former CEO of the crypto mining company Bitmain, believes regulations are necessary for the cryptocurrency industry.
Wu explained that regulation of the crypto space is good for the long-term growth of the sector.
Regulatory crackdown on crypto and legislative framework around the crypto market has become a hot topic for discussion in the crypto sphere over the past years. Regulatory authorities and agencies have continued to beam their torch in the space and unrelenting to bring it totally under their control.
While speaking to CNBC, Jian Wu explained that the crypto market could become more prosperous once clear regulations go into effect. Wu described regulatory crackdown and pressure as “very healthy.
He attributed pressure the crypto space is experiencing now from regulators to the fact that the sector has evolved, having approximately a trillion-dollar market cap with several people who have their money stashed in the space. Wu notes that for this reason, regulators cannot ignore the crypto industry.
Regulatory crackdown on crypto industry
Regulatory crackdown on the crypto space in recent times has been very fierce. China has been closing in on the industry forcing Bitcoin miners out of the country despite housing the highest number of miners globally.
Binance, the number one crypto exchange firm, has also been under heavy scrutiny from regulators worldwide. Most recently, the Financial Conduct Authority alleged Binance operated illegally in the UK. The exchange is still handling that crisis and its effect.
Amidst these, Wu believes that engagement between regulators, governments, and companies are necessary and would result in a positive outlook for the crypto space in years to come.
The former Bitmain CEO sighted Singapore as an example of an enabling environment for crypto business. He described the Asian country as “reasonable,” highly efficient, and “approachable” in its dealings with the crypto space.
Financial Times Report states that Singapore is one of the few countries with friendly crypto regulations. The report highlights that many crypto organizations and groups are finding the country amenable to crypto products and innovations.
