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Advantages of Regulatory Pressure on the Crypto Industry

Pressure on the Crypto Industry

Advantages of Regulatory Pressure on the Crypto Industry

Pressure on the Crypto Industry. Increased regulatory oversight could benefit the cryptocurrency industry, Bitmain billionaire and co-founder Jihan Wu said in a comment to CNBC.
In his opinion, regulation “weeds out attackers” and improves the reputation of the industry in the face of rapid growth.

“Regulatory pressures are stronger than before. I think that such harsh persecution can be beneficial in the long term, ” – Wu said.

He also suggested that more active engagement from the cryptocurrency industry with the authorities is necessary and likely to bring positive results.
As an example, the billionaire cited Singapore, where his crypto-financial venture Matrixport is based. According to Wu, the country’s government is taking a “smart” stance when it comes to dealing with the digital asset space.

“There are many good reasons for Singapore to become a hub for crypto innovation,” he added.

The regulatory pressure of crypto industry and mining of other countries

In May, three associations under the People’s Bank of China issued a joint notice prohibiting companies from supporting cryptocurrency-related businesses.

Later, Vice Premier of the State Council of the People’s Republic of China Liu He announced the plans of the authorities to take measures regarding the mining of digital assets and trading in bitcoin.

Within a month, the authorities of several Chinese provinces ordered the miners to cease operations. Among them: Yunnan, Sichuan, Qinghai, Xinjiang, and Inner Mongolia.

Bitmain has offered its clients assistance in moving abroad. The American mining company Foundry predicted that by the end of June, approximately 90% of Chinese cryptocurrency mining enterprises would turn off their equipment due to the government’s prohibitive measures against the industry.

In June, cryptocurrency exchange Binance faced pressure from regulators. The platform began to be tested in the Cayman Islands, in Thailand it was accused of operating without a license, and in Japan, another warning was issued. The Polish regulator called for caution when using the platform.

The UK Financial Conduct Authority has banned Binance Markets Limited from any regulated activity in the country without prior written approval.

Recall that Gemini co-founder Cameron Winklevoss announced plans to beat Binance in the competition amid its problems with regulators.

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