Former CEO of Bitmain Jihan Wu believes that regulatory intervention in the cryptocurrency industry will positively affect it in the long term.
He expressed his opinion in a speech at the Asia Tech x Singapore conference. The total capitalization of the cryptocurrency market is already about $ 1.3 trillion, and 10% of this figure is accounted for by US citizens. The influx of finance into cryptocurrencies worries many governments, who cannot calmly watch the growing interest in digital assets.
However, Wu believes that the active desire of regulators to control cryptoassets only plays into the hands of the industry, and over time this will bring positive results.
“I agree that regulatory pressure is stronger than before. But it will cleanse the cryptocurrency industry of scammers and intruders, improving its reputation. I think that even such a harsh persecution of cryptocurrencies can be beneficial, ”said W.
He believes that if governments and cryptocurrency firms begin to work more closely together, the maturation of the industry could be less painful. Wu cited Singapore as an example, describing his government’s actions as prudent and efficient when it comes to cryptocurrencies.
The former head of Bitmain explained that if the participants in the cryptocurrency industry do not harm the local population, then the authorities of the country do not “harass” them and do not impose legislative measures against them. According to Wu, Singapore has every chance of becoming a center for the development of the latest technologies and cryptocurrencies.
Jihan Wu’s words echo the recent statements of Binance CEO Changpeng Zhao. Even with Binance’s difficult relationship with regulators, Zhao is also optimistic, believing that they are only trying to protect users.
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