Ex-Bitmain CEO says regulated crackdown could be good for cryptocurrency

Ex-Bitmain CEO Jihan Wu says regulatory repression can actually be good for cryptocurrency in the long run, but what he means exactly, we’ll find out in today’s Crypto News.

We’re also introducing Singapore, where his company Matrixport is based as a heavyweight to serve as the perfect crypto hub for crypto innovation. Ex-Bitmain CEO Jihan Wu believes the current wave of regulatory interference in the crypto space could be a good thing in the long run. Speaking to CNBC during an Asia Tech X conference in Singapore, Wu noted that the sector has grown into a trillion dollar market cap industry, with more than 10% of US citizens participating in the new asset class. In the circumstances, he argues that greater regulatory involvement will be net profit for the cryptocurrency in the long run:

“I think the regulatory pressure is stronger than it was before, but it will bring a lot of bad people out of the industry and make the industry reputation much better than it would have been without them. So I think this type of repression could be a good thing for the industry in the long run. “

The recent crackdown on cryptocurrencies has taken a blow in China, which has long sought to restrict and even prevent trading in decentralized digital currencies. Other developments, such as the recent measures taken by jurisdictions against the leading exchange, Binance, suggest that a more interventionist approach is gaining momentum around the world. Caitlin Long, CEO of Avanti Bank and Trust, tweeted that regulatory action against cryptocurrencies had begun in the US. Lond stated that regulators will track intermediaries and access points for US dollars in the sector rather than targeting assets like ETH and BTC.

Wu suggested that more engagement between regulators and governments in the crypto sector is needed and will produce positive results. He pointed to Singapore as an example where the government is “sensible”, efficient and approachable in dealing with industry. in Singapore, he said the authorities leave them alone and will not take legal action against them as long as industry actors do not harm local citizens:

“There are many good reasons for Singapore to be a hub for crypto innovations.”

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