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EY’s global blockchain leader says it’s the first time cryptocurrency price volatility hasn’t had such a big impact on the industry’s long-term growth. Nevertheless, he emphasized that:
EY blockchain global leader Paul Brody spoke about crypto winter, the need for regulation and the collapse of crypto exchange FTX in an interview published by the Mint on Thursday.
He was asked if he expected the current crypto winter to end soon. This is a much milder crypto winter than last year, he replied. One of the main features of this winter has been the ongoing decoupling between cryptocurrency prices and ongoing product and engineering development work in the crypto industry, EY executives said. says so.
For the first time in history, rising and falling prices no longer have a significant impact on the long-term growth of the industry. We are slowly moving away from the purely economic focus of the industry.
He added that the Ethereum ecosystem is currently focused on application development, non-fungible tokens (NFTs), and decentralized autonomous organizations (DAOs).
EY executives also discussed the collapse of cryptocurrency exchange FTX. Bernie Madoff.
In response to a question about whether users can trust the crypto exchange following the FTX meltdown, he warned: It was a flawed theory. Just because he saw the data doesn’t mean he can understand the complex data flow of the contract. “
Companies that have tried to blend on-chain and off-chain financial transactions without strong regulatory scrutiny have failed, Brody continued.
It was impossible to know whether your assets were strictly held and used on your behalf, or pledged and used in other scenarios, warned the EY blockchain leader. “The key point is that governance must be simple enough for people to follow, or you can take a rigorously audited, publicly traded approach.”
He also stressed the need for stricter regulation, stating:
It’s also important for regulators to crack down on obvious Ponzi schemes more quickly and aggressively. I would love to see more regulatory activities and rules that good players can follow.
In the wake of the FTX meltdown, many have called on regulators in various jurisdictions to step up their oversight. Bank of England Deputy Governor for Financial Stability Sir John Cunliffe emphasized The demise of FTX this week highlighted the urgent need for increased regulation.The White House and several US Senators Proper crypto monitoringRecent U.S. Congressmen urged The Securities and Exchange Commission (SEC) will take decisive action to regulate the crypto industry.
What do you think of the EY executives’ comments? Let us know in the comments section below.
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