The regulatory pressure on the crypto-verse hit a new high this time. From countries like China banishing the entire crypto mining industry to an array of regions ousting Binance, the crypto industry endured a significant setback these last couple of days. The founder of a prominent crypto mining firm believed that regulatory pressure was, in fact, good for the growth of the industry.
2021 undoubtedly started on a good note for the crypto sphere. With Bitcoin raging up to a high of $60K, the market had a good run. This surge in price also brought the industry popularity. After the crypto industry managed to amass increased attention, regulators from across the globe started paying more heed to the market.
Bitmain’s former CEO, Jihan Wu, suggested that this was all for the best as it negates the bad actors from the industry.
Regulatory pressure a good thing for crypto?
Recently speaking to CNBC, Jihan Wu elaborated on how the latest regulatory scrutiny would favor the crypto-verse. Noting that it is a highly healthy procedure, he added,
“I think the regulatory pressure is stronger than before but it will get a lot of bad actors out of the industry and make sure that the industry’s reputation is much better than without it. So I think this kind of a crackdown may be a good thing for the industry in the long term.”
The crypto industry had to wait a long time to brush off comments surrounding its association with the dark web. Even after several years, authorities across the globe continue to connect the crypto industry with the dark web and its perils.
Furthermore, Wu pointed out that the crypto market was a “fast growing financial sector,” which is progressing into becoming a trillion-dollar industry. Wu also stated,
“It’s growing almost to like a trillion dollar market cap industry, and more than 10% of the United States’ citizen have already got some involvement with cryptocurrency.”