Last week, we spoke about the FTX story. How it happened, how the facts unfolded.
But still we have plenty of questions about what went down with FTX. One of the main ones we have is: how do we make sure it doesn’t happen again?
Answering that question is complicated and probably requires us to face the topic of regulating an industry that has long marketed its lack of regulation as one of its key features.
It is unthinkable, especially in the short term, to think that every user who approaches the crypto world will have the knowledge and technological capability to store and manage his digital assets completely independently.
For this reason, there will always be a need for centralized players that offer private key custody services and the purchase and exchange of tokens with FIAT currency.
These institutions will have to fulfill the task of acting as a “bridge” between finance and traditional currency and crypto assets.
At the current state of the market two main scenarios could play out, in fact it is more likely that we will move toward a parallel development of both:
Increasing regulation of native crypto technology companies that offer services in a centralized manner, such as centralized exchanges like Binance or Coinbase.
These same companies in the blockchain world, like Coinbase, have been already asking for regulamentation and warning of some activities. Operations have frequently been moved overseas due to unclear instructions because there are fewer regulations there, which allows human emotions to run wild.
On the other hand, large banks and financial institutions that are already regulated will increasingly implement blockchain technology-based and crypto-related services.
Some of the more technologically advanced challenger banks, such as Revolut for example, have already begun to implement some cryptocurrency buying and selling services centrally.
The entry of these large entities will be crucial for the development and diffusion of the technology to the mass market.
For this reason, our goal is to help financial institutions use Blockchain technology by making it easy and intuitive thanks to our platform to interface with the web3.0 world.
BlockInvest works with real-world assets, which are already regulated for decades or more.
People will once more make fun of cryptocurrency and even blockchain as a result of this. And maybe they are right. These people might disconnect and forget about cryptocurrencies for a while.
But it is now clear for all to see that blockchain technology will be able to bring enormous benefit to the entire financial sector and beyond. It is no longer a question of “if,” but of “when” this technology will take over.
There is no point in ignoring the elephant in the room or continuing to hide, regulation of the industry today is needed more than ever, but that it is done intelligently. We must have the intelligence and humility to all sit at the same table and write guidelines with “four hands” regulators and crypto evangelists.