For the longest time, cryptocurrencies have tried their best to differentiate themselves from the rest of the market. More specifically, they have always wanted to differentiate themselves from traditional finance and the intermediary that it has.
Cryptocurrencies as a whole were not supposed to have any sort of regulation over them, and nor were they supposed to be working with traditional banking. Instead, it was meant to absorb the banking sector entirely and then make its move to the rest of the market.
However, it would seem that a lot of the ambitions that many wee holding on to during the start of the crypto revolution have all but faded, as the crypto market becomes shockingly similar to most traditional types of financial institutions.
Recently, the crypto market has also started becoming more reliant on central banks, as it is constantly holding its breath with how the market will change now. The interest rates affect them too, but one place where crypto investors will not compromise is regulation, as it goes against everything that crypto stood for.
However, the fact of the matter is that many countries are working on drafting legislation for regulation and most of the CEOs of big exchanges are in favor of it.
FTX CEO Comes Under Fire
The current FTX CEO has been coming under fire following an announcement that he supports the current regulation efforts from various countries. This did not sit well with most investors, who believe that the CEO is giving up on the vision of crypto.
In the past, the FTX CEO has been very critical of the US and its inconsistent regulation efforts. Since nearly every major government department could now regulate crypto, it was really starting to stifle the overall innovative process.
A Discussion Turned Hot
The CEO first made their comments clear through a dedicated blog post as to why they think something like this should happen. More specifically, they had a very specific idea as to what regulation should look like and how the countries should go about it.
Of course, his most controversial opinion came much later in the blog post, where he said that both DeFi and CeFi should be under a single regulatory roof. Not only could this negatively affect various cryptocurrencies, but it can also hurt the vision of the industry.
A New Beginning for Cryptocurrencies
The first real issue that people have with the statement is that it seems like the CEO doesn’t understand the inherent differences between CeFi and DeFi. But this could be an interesting turning point for crypto, as most people who are against regulation believe that the market should be able to rtegulate itself.