Crypto: what could more regulation mean for the future of digital currencies?
The founder of the world’s largest cryptocurrency exchange, Binance CEO Changpeng Zhao, has called for more regulatory clarity after a week of crypto market chaos and a year in which investors are estimated to have lost US$2 trillion (£1.7 trillion). “We do need to increase the clarity of regulations and the sophistication of regulations in the crypto space,” Zhao said to a gathering of G20 leaders at a summit in Bali.
But it is not only regulators that bear responsibility for protecting people, the industry should also look at new models that could help.
The recent collapse of FTX – which has filed for bankruptcy protection in the US, but was valued at US$32 billion earlier this year – has had significant repercussions for the entire cryptocurrency industry.
Even the most established digital currency, Bitcoin, hit a two-year low following the FTX woes. Cryptocurrencies allow traders or investors to buy and sell without the need for banks and brokerages.
