The cryptocurrency industry has been under the microscope of regulators in recent months as governments worldwide attempt to rein in the rampant speculation and potential for abuse of the nascent industry. Kevin O’Leary, the well-known investor and venture capitalist from Shark Tank, recently approved the SEC’s decisions, indicating his backing of the regulatory body.
Additionally, he expressed his support for ex-FTX CEO Sam Bankman-Fried, insisting that he should be deemed innocent until a court of law proves him guilty.
In a recent interview, O’Leary stressed the significance of cryptocurrency exchanges adhering to rules and regulations if they want to evade the scrutiny of the United States SEC and its Chairman, Gary Gensler. His comments come when regulators are beginning to pay attention to the crypto community due to worries regarding its deficiency of regulation and clarity.
O’Leary remarked that US legislators are becoming increasingly exasperated with crypto firm collapses and misfortunes. He speculated that if companies do not comply with regulations, legislators will become even more uncompromising.
He recommended that crypto exchanges “embrace regulation” to stay clear of the SEC and its controllers. As the value of cryptocurrencies has experienced a surge, governments and regulators worldwide are focusing on controlling cryptocurrencies and related services.
The sentiment of the crypto sector is that it is imperative to abide by regulatory requirements to guarantee the long-term success and steadiness of the crypto market, as evidenced by O’Leary’s remarks. Furthermore, O’Leary admits to having nearly all of the $15m he was given for being FTX’s official representative evaporate.
Even though his investment in the business was unsuccessful, the foremost investor has backed the ex-CEO of FTX, Sam Bankman-Fried, asserting that he should be given the benefit of the doubt until proven guilty. Furthermore, O’Leary expressed his willingness to invest in the entrepreneur again if the chance presents itself.
Is Decentralization The Right Answer?
Previously, Kevin O’Leary had voiced his disapproval of decentralized and unregulated participants in the industry. Last August, he supported the Dutch authorities in arresting Alexey Pertsev, the creator of Tornado Cash, a cryptocurrency mixer built on the Ethereum network.
O’Leary elucidated that applications like Tornado Cash and the “crypto cowboys” who make them disrupt the vital forces of regulation. According to O’Leary, for large amounts of money to enter the cryptocurrency market, a more structured, regulated environment needs to be established, which includes tighter restrictions on services such as Tornado Cash.
He believes it is acceptable to apprehend anyone attempting to bypass regulatory forces, as this is necessary to create a stable environment attractive to institutional investors. By being vocal about his stance on regulation and working with regulators, he is helping to legitimize the industry and pave the way for its greater transparency and accountability.
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