Letters: Time to regulate cryptocurrencies

Letters: Time to regulate cryptocurrencies

(Photo by Michael M. Santiago/Getty Images)

[Re: Bitcoin tumbles below £13,500 as FTX turmoil continues, Nov 21]

The collapse and ensuing investigation of FTX has cast a spotlight on the cryptocurrency ecosystem, sparking a wider public discourse on whether decentralised finance has a future role to play.

While not downplaying the impact this collapse will continue to have on the crypto markets, we need to put this collapse in perspective and not let it dismiss the long-term value on offer from decentralised finance.

The decentralised market is a complex entity, comprising cryptocurrencies, blockchain and other Web3 technologies.

There are significant efficiency gains to be made from their uses.

The real question we should be asking is what regulatory measures and industry-backed initiatives we can put in place to prevent a similar FTX collapse from happening, while still finding a balanced approach to ensure innovation isn’t stifled. Doing so means we do not dismiss the immense potential on offer from decentralised finance which is still very much in its infancy stage.

Alan Vey 

Read More

Write a comment

Your email address will not be published. All fields are required