Bankman-Fried Believes Regulation Will Attract Enterprises To Crypto Space In Large Numbers

  • Sam Bankman-Fried, founder and CEO of cryptocurrency exchange, FTX believes the year 2022 will witness a wider adoption of institutional adoption of cryptocurrency given that the proper crypto regulations are implemented.
  • Regulation is the most debated topic with many arguing that regulating crypto would be against what crypto stands. However, looking at where the crypto stands today retailers rule the space, and occasionally it witnesses Institutional Investments from companies such as Microstrategy and Square.
  • At the same time, the FTX CEO addressing investors said that they shouldn’t expect any major changes in the near future as the process to enforce correct regulation is lengthy and can take a long time.

For many years, regulation has been a controversial subject in the crypto sphere. Bringing regulation into the mix, for some, goes against everything crypto stands for. After all, it was created to be a completely decentralized environment where people could have complete authority over their finances. There can’t be any laws or regulations that go in the way of their decisions in order for this to happen.

But this has also created problems and some were even scammed and frauded with fraud and scams by malevolent individuals seeking to obtain funds they have not earned. In the span of a few years only, the industry has been robbed of billion-dollar theft and most of the money hasn’t even been recovered yet, even after the regulations assisted those who have been exploited.

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Now, the question arises whether the crypto space will continue to run like it does today or will it be encapsulating certain elements of traditional finance for traders to feel more secure. Sam Bankman-Fried believes involvement in the latter will pave an on-ramp for more companies and institutions to enter into the crypto space. Institutional Investments from companies such as Microstrategy and Square are rare in comparison to retailers today in the crypto space. 

The notion is that regulation is crucial for stabilizing crypto space and making it more mainstream and legitimate.

Bankman-Fried, CEO of FTX, is positive that the correct regulation is the way through which enterprises will dive into crypto space in great numbers and start investing regularly, raising the prices to a new high.

That might come in a tidal wave, especially if we believe they’re gaining clarity. It’s possible that it’ll come in a trickle, says Bankman-Fried.

However, at the same time he also admitted to the fact that establishing regulation will take a long time and therefore, the traders shouldn’t anticipate any significant changes in the near future. He says that the process is long and it could even take years. He also disclosed that he had talks with almost every large investment bank and pension fund – the sector is on their radar. Several among them have already begun executing their plans, nonetheless, he added that it takes time.

It has been only three years since Bankman-Fried started his exchange in 2019. He is optimistic that great things await crypto in 2022 especially after the fantastic year Bitcoin and other digital assets had in 2021. 

He says he is confident that a lot of activities will happen this year in the crypto space.

Source: https://www.thecoinrepublic.com/2022/01/09/bankman-fried-believes-regulation-will-attract-enterprises-to-crypto-space-in-large-numbers/