- Kevin O’Leary believes crypto exchanges need to comply with regulations to avoid more ruthless crackdowns from U.S. lawmakers.
- He predicts that regulated trading platforms will be better investments than unregulated ones over the next few years.
- O’Leary thinks that there will be more fiascos in the crypto world and that investors should be cautious when investing in unregulated exchanges.
Kevin O’Leary, also known as Mr. Wonderful, is a well-known investor, a television personality, and a venture capitalist who has gained popularity from the hit television show, Shark Tank. O’Leary’s net worth is estimated to be over $400 million, and he has invested in various industries, including finance, entertainment, technology, and many more.
Recently, O’Leary has been vocal about his thoughts on the cryptocurrency market, particularly on the ongoing regulatory crackdowns. In a recent interview with TraderTV Live, he urged crypto exchanges to “get on board with regulation” if they want to “stay out of the way” of Gary Gensler and the United States Securities Exchange Commission. He believes that the US lawmakers are “fatigued” over crypto collapses and that they’re only going to get more ruthless if companies continue to not comply.
FTX “Poked the bear”
O’Leary stated that “FTX poked the bear and the bear is awake, and it is pissed. ” The SEC whacking Kraken for $30 million and ordering them to immediately cease its staking services should put the industry on alert and to comply by all means. The Shark Tank investor predicted that regulated trading platforms will be better investments than their unregulated counterparts over the next few years.
The absence of guardrails in the crypto industry led to the collapse of FTX, which is part of a pattern of weekly blow-ups of crypto firms going to zero. This trend will persist as long as there are no barriers to entry and people continue to be motivated by greed to issue worthless tokens.
Kevin O’Leary acknowledges that self-regulation has failed and that heavy-handed regulation would be beneficial for the industry in the long run. He believes that explosive growth in cryptocurrency firms will continue until regulation is put in place.
There are signs of regulation on the horizon, as evidenced by the shift in Washington’s tone and the recent Kraken transaction. Gensler’s dislike for staking suggests that more regulations are forthcoming, and failure to comply may significantly decrease the value of cryptocurrencies.
O’Leary recently commented on the recent regulatory crackdown on the crypto industry, saying that U.S. lawmakers are “fatigued” and “pissed” with the crypto industry after having to deal with one blowup after another. He believes that the recent regulatory action against Kraken should put the industry on alert.
The future according to O’Leary
O’Leary believes that the future of the crypto industry is in regulated trading platforms, and that unregulated exchanges will be put out of business or go to zero. He has urged crypto exchanges to “get on board with regulation” if they want to “stay out of the way” of Gary Gensler and the SEC.
The Shark Tank investor has previously expressed dislike towards some of the more decentralized, unregulated players in the industry. On Aug. 13, O’Leary said Dutch authorities were right to arrest Alexey Pertsev — the creator of Ethereum-based crypto mixer Tornado Cash — because such applications and the “crypto cowboys” that run them “mess with the primal forces of regulation.”
O’Leary has had some experience in the cryptocurrency market, having been the official spokesperson for FTX, a cryptocurrency exchange that has been embroiled in controversies and regulatory issues. Despite admitting that FTX was a “bad” investment, Mr. Wonderful has continued to defend former FTX CEO Sam Bankman-Fried, claiming that the controversial figure should be treated as innocent until proven guilty and adding that he wouldn’t rule out investing in the failed entrepreneur again.
Kevin O’Leary has been vocal about his thoughts on the cryptocurrency market and the ongoing regulatory crackdowns. He believes that the industry needs to comply with regulations to avoid further crackdowns by US lawmakers. Despite his past experiences with FTX and the controversies surrounding the company, he continues to advocate for regulation and to defend individuals who are embroiled in legal issues