Recently, the Binance crypto exchange got embroiled in several questionable transactions, causing concern among several users. The company communicates little about the reasons for certain inconveniences caused to them. A posture which according to several analysts could serve it while the FTX affair is still haunting people’s minds.
Binance, threatened by the trend towards regulation of the crypto industry?
Interviewed by youtuber Scott Melker, the Canadian businessman, Kevin O’Leary delivered his analysis on the news of the crypto industry last Tuesday. This time it particularly concerns Binance, the great rival of FTX.
Would the same fate be reserved for Binance? The Shark Tank star doesn’t put it that way. But she signals that crypto company executives should be on the lookout for regulatory efforts. Efforts that seem to be taking place on a global scale.
According to him, this growing regulatory trend has the potential to harm Binance. He recalled that like the entire crypto industry, the exchange has been working so far, without the direct intervention of the authorities.
Moreover, the company is currently the subject of various complaints from users around the world. A situation that attracts the attention of the regulatory agencies of the countries where it operates. As a result, Binance would not be immune from investigations by regulators, points out Kevin O’Leary. The host adds that the crypto exchange should prepare for it, failing to find the means to negotiate.
Are users potential collateral victims?
What can logically be inferred from the businessman analyst is that there is a risk that the situation will affect users. Because if it is true that the trend towards regulation aims to protect investors first and foremost, the latter will not be spared.
Indeed, regulating the crypto industry directly implies that many cryptos, and the companies that operate them, will have to disappear. According to O’Leary, at least 10,000 cryptos out of the approximately 22,470 in the market, are condemned to lose 100% of their current value, for lack of relevance.
This prospect, users and the industry will have to prepare for it today. This is in particular the opinion that Kevin O’Leary had defended in a recent analysis he made of the crypto sector.
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