This article briefly:
· Sam Bankman-Fried’s conviction strengthens the arguments of cryptocurrency critics and gives the industry a choice on how to proceed.
Cryptocurrency enthusiasts want cryptocurrencies to remain separate from the fiat currency system, but others believe that adoption by traditional finance is the way forward.
As lawmakers tighten regulations following the FTX debacle, tighter conditions have led to crypto firms exiting the U.K. and Canadian markets.
The collapse of FTX and the conviction of former CEO Sam Bankman-Fried have left the crypto industry questioning how it can survive. In some regions, such as the UK and Canada, cryptocurrency exchanges have been forced to exit or merge to survive, while others in the crypto community see traditional finance as the way to survive.
Earlier this month, a nine-member jury convicted former FTX CEO Sam Bankman-Fried of multiple counts of fraud. Since then, the former crypto golden boy’s fall from grace has left many in the industry hesitant about how to move forward.
The crypto industry faces serious problems
Bankman-Fried’s high-profile backing of FTX helped lend an aura of legitimacy to cryptocurrencies after the collapse of Japanese exchange Mt. Gox, which lost hundreds of thousands of dollars in customer funds. In its heyday, FTX attracted investments from Sequoia Capital, Tiger Global and the Ontario Pension Fund.
Now, cryptocurrency critics see Bankman-Fried’s fall as marking the end of a largely lawless era for cryptocurrencies. Prominent cryptocurrency skeptic John Reed Stark called Bankman-Fried’s conviction the “death knell” for blockchain and Web3.
Now, despite interest in the industry from firms like BlackRock and Fidelity, cryptocurrency backers face a tough choice: seek mainstream acceptance or stick with the ethos of cryptocurrency and risk being on the fringe.
Charles Storry of cryptocurrency futures index platform Phuture said the industry still has life.
“The public image of cryptocurrency is at an all-time low, but the industry is not done yet.”
But one thing is certain: the road ahead will not be smooth.
Canadian, British cryptocurrency exchanges reorganize
After the FTX debacle, lawmakers around the world tightened cryptocurrency rules, suffocating some exchanges. Most recently, the UK’s Financial Conduct Authority made it illegal for cryptocurrency companies to advertise without approval from an authorized firm. As a result, Binance said it would stop accepting new UK customers after Bybit announced its exit from the region.
The Canadian Securities Administrators previously classified stablecoins as securities, making it difficult for most cryptocurrency exchanges in Canada to maintain operations. Binance and Bybit left the region earlier this year.
Binance loses market share | Source: Internet
The merger of Coinsquare and CoinSmart with its parent company WonderFi is intended to integrate two of Canada’s largest cryptocurrency exchanges, Buybit and CoinSmart. WonderFi acquired BuyBit in 2022.
Hong Kong restricts the exchanges that can list assets, while Europe’s crypto asset markets law makes the listing process of crypto assets cumbersome. Only a handful of exchanges in Hong Kong have been licensed, and the impact of the European law will not be felt until next year.
Last month, U.S. lawmakers French Hill and Cynthia Lummis cooled previous enthusiasm for cryptocurrencies by calling for criminal charges against Binance and stablecoin issuer Tether over alleged involvement in terrorist financing.
Do you have anything to say about cryptocurrency exchanges in Canada, the UK, or other countries? #FTX #英国
