Galaxy Digital’s boss said the cryptocurrency industry is currently facing a lack of trust following recent events.
Galaxy Digital CEO Mike Novogratz said in an interview with CNBC on Wednesday that there is a crisis of confidence in the market. According to Novogratz, the market is unlikely to recover soon.
“Our industry has failed to self-regulate,” said Galaxy Digital CEO Mike Novogratz of cryptocurrencies. https://t.co/YRU4JuDQA7 pic.twitter.com/x6iWF0Bbpp
— CNBC (@CNBC) November 23, 2022
“This is always about building trust with the client. Right now we are losing trust. People have black swans around every corner and everyone else says one thing and does another. I think I’m a sociopath who does things.”
FTX’s bankruptcy came after documents revealed that the crypto exchange was using customer funds to invest without permission. When asked about it, Novogratz said.
“As an exchange or company, we need to separate our customers’ accounts and their funds. It is clearly explained to users. But cryptocurrency exchanges are not.”
Galaxy Digital CEO has lamented the crypto industry’s failure to self-regulate. He suggested that companies handling the financial side of cryptocurrencies, including Galaxy Digital, would be regulated.
Novogratz added that the technical side of cryptocurrencies also has its own regulatory challenges, such as KYC (know your customer) and AML (anti-money laundering). he added it.
“It’s all about building trust with clients, but right now we are facing a lack of trust. People have black swans around every corner, everyone says something and does another. I think I’m a socialist who has
Bankruptcy of FTX Second largest loss of money Behind the collapse of LUNA in the history of cryptography.
In an interview two weeks ago, Novogratz said Only time will tell if FTX’s Bankman-Fried is guilty of financial crimes.