Ex-Bitmain CEO says regulation is healthy for crypto

Crypto billionaire Wu Jihan, says that the recent increase in regulatory scrutiny of cryptocurrency is very healthy for the sector, and that it can weed out bad actors and improve the industry’s reputation. 

Talking to CNBC backstage at the Asia Tech x Singapore conference, Wu Jihan said that the recent regulatory pronouncements on crypto were actually a good thing for the industry. 

“I think that such kind of crackdown may be a good thing for the industry in long term,” 

Wu, who is the co-founder and chairman of Matrixport, a digital asset financial services platform, said that regulatory action was necessary and that it would “weed out bad actors” thereby giving the industry a better name. 

The billionaire, estimated to have a fortune of around $1.8 billion, spoke about the high growth in the crypto industry, saying that: 

“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.” 

However, there has been a lot of pressure on the industry of late. Federal Reserve Chairman Jerome Powell called cryptocurrencies “vehicles for speculation”.  

Also, Binance, the largest cryptocurrency exchange by trading volume, has drawn some negative concerns, including from the UK’s financial watchdog, the FCA, which said that Binance Markets Ltd was “not permitted to undertake any regulatory activity in the UK.” 

All the while, the Chinese government crackdown on cryptocurrencies has intensified. Some bitcoin mining operations were banned, while others were given until the end of the year in which to seize operations.  

In addition, the government has been leaning on Alipay, the Chinese payments giant, to desist from providing services for cryptocurrency activities. 

In contrast, Wu held up the Singapore government as being quite open to new innovations regarding financial technology. His company is now headquartered there. He said of the country: 

“I think it’s a very good place to build a worldwide brand, financial service brand,” 

And, 

“The government is reasonable, very high efficiency, and is approachable,” Wu added. “There are many good reasons for Singapore to be the hub of the crypto innovations.” 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.