Crypto needs to establish itself as a “brand-new” component of traditional finance, rather than try to squeeze itself into existing financial products, suggests the CEO of crypto exchange Bittrex Global.
The company’s United States arm recently filed for Chapter 11 bankruptcy, announcing it intended to return customer funds and wind U.S. operations. It added it would not impact global operations.
Speaking to Cointelegraph at Bitcoin Miami on May 18, Bittrex Global CEO Oliver Linch stated that in several places, including the United States, regulators tend to view crypto through the lens of traditional finance when trying to comprehend its nature.
Off to Miami this week for @TheBitcoinConf!
I’m honoured to be a part of the “What Happened: Exchanges/FTX” panel this Thursday. Find me on the Nakamoto main stage, alongside @stephanlivera, @luledemmissie and @Leishman.
See you there! pic.twitter.com/2oCaXo2KJn
— Oliver Linch (@OliverLinch) May 16, 2023
He argued however that it is ineffective to try and analyze crypto through the “prism of traditional finance.”
Instead, crypto should be a “brand-new […] thing” in the traditional finance space but still align the same fundamental principles as other traditional financial products, he said, adding:
“You’ve got securities, you’ve got derivatives, you’ve got crypto. It’s just another component, right?”
On the other hand, Linch emphasized that the “most robust regulatory regimes” being set up are countries that actually engage with “crypto-on-crypto zone terms.”
In an ideal world, Linch suggested that in “5 to 10 years” from now, crypto will seamlessly integrate into traditional finance, and events like “Bitcoin Miami shouldn’t exist.”
Related: Where crypto can grow: Digital asset regulations around the world
The U.S. arm of the crypto exchange announced on April 1 that would be winding down operations on April 30, citing a challenging regulatory and economic environment in the United States.
Co-founder and CEO Richie Lai said that as the crypto ecosystem evolved, regulatory requirements have become increasingly “unclear” and “enforced, without appropriate discussion or input,” leading to an uneven competitive landscape.
This environment has made it economically unviable for Bittrex to continue its operations in the United States, he said.
Magazine: Crypto regulation: Does SEC Chair Gary Gensler have the final say?