Ripple Asia-Pacific Policy Director Rahul Advani believes that although the FTX crash has taken a huge toll on the cryptocurrency industry, there is a way to protect against such situations.
According to Rahul Advani, there are too many “hype” and low-value projects in the industry, as well as speculation. Therefore, during high-profile events, such as the collapse of FTX or Terra, such projects are extremely vulnerable.
However, if blockchain or cryptocurrencies are applied in real use cases, it will protect the industry. In addition, adequate and transparent regulation is needed:
“The collapse of FTX caused massive damage to the crypto space and once again highlighted the need for industry regulation. Legal regulations should provide quality consumer protection, while adequately addressing the risks faced by crypto companies. I certainly would not want heavy regulation that would destroy innovation in this sector.”
At the same time, Advani believes, regulators will not be able to drive everyone one size fits all – the cryptocurrency sphere is very diverse, so it is necessary to approach it from the side of risk management.
“We believe that the cryptocurrency sphere will remain for a long time and will prove its usefulness in real life. And this is exactly what projects should do – not to raise hype, but to bring real benefits, ”concluded Rahul Advani.
Earlier, US Congressman Tom Emmer said that the poor and inept regulation of the cryptocurrency industry by the SEC was one of the reasons for the collapse of FTX.
Source: Bits
I am an experienced journalist, writer, and editor with a passion for finance and business news. I have been working in the journalism field for over 6 years, covering a variety of topics from finance to technology. As an author at World Stock Market, I specialize in finance business-related topics.
