Kraken Founder Jesse Powell Claims Crypto Game is ‘More Fair’ Amidst Emerging Threats
According to Kraken Founder Jesse Powell, the crypto game feels “a bit more fair today” following Binance’s $4.3 billion settlement agreement with the U.S. Department of Justice and the resignation of its CEO Changpeng Zhao. Powell believes that the industry now needs to engage in self-policing as timely protection cannot be relied upon. He warns that new threats to the industry’s reputation continue to emerge, providing governments with opportunities to tighten regulations and scapegoat cryptocurrencies.
Powell also commented on Binance’s rapid international expansion, expressing difficulty in maintaining faith as market share dwindles and enforcement actions seem to primarily target legitimate players. Notably, Kraken itself is facing a lawsuit from the U.S. Securities and Exchange Commission (SEC) for operating as an unregistered securities exchange, broker, dealer, and clearing agency.
Hot Take: Challenges for Kraken and Binance Highlight Need for Industry Self-Policing
The recent challenges faced by Kraken and Binance underscore the importance of self-regulation within the cryptocurrency industry. While regulatory actions against non-compliant players are necessary for market integrity, they should not overshadow the positive contributions made by legitimate crypto exchanges. As governments tighten regulations in response to emerging threats, it becomes crucial for industry participants to proactively adopt self-policing measures to maintain trust and credibility. By adhering to robust compliance standards and implementing effective internal controls, crypto exchanges can mitigate risks and ensure fair operations. Ultimately, a collective effort towards self-regulation will contribute to the long-term sustainability and growth of the crypto industry.
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