Entrepreneur Kevin O’Leary has proposed an exchange passport system to oversee cryptocurrency regulation on a global scale.
“I think all this is coming and I think this is the way we are going to get out of this.
How does the crypto exchange passport system work?
O’Leary noted that lawmakers are fed up with the cryptocurrency scandal following the FTX disaster and intend to crack down on the industry.
The TV personality said 80% of people who bought cryptocurrencies lost 82% of their money in the past two years. Investor expectations for better protection are therefore increasing.
O’Leary revealed that he has moved his remaining crypto assets (after his loss on FTX) to the Bitbuy exchange. He was confident in doing this because the Ontario Securities Commission tightly regulates the exchange.
“We moved to Canada under regulatory oversight, so we have an account there. It’s about being prepared and staying compliant every month.”
The exchange passport system operates with passports granted to compliant organizations such as Bitbuy. Only approved and passported organizations can be linked to the banking system for on/off ramping.
This format is copied in all jurisdictions, thus eliminating centralized villains wherever they are.
Self-custody and decentralized exchanges are alternatives to the scenario described by O’Leary.
No Large Institutions Own Bitcoin, According To O’Leary
Related to the current lack of a unified global approach to cryptocurrency regulation, O’Leary said the idea that institutions are betting heavily on bitcoin and cryptocurrencies needs to be dispelled. I thought.
He said institutions “do not own it” because “there is no compliance platform” for buying cryptocurrencies, even if they want to buy it. It didn’t work.
Host Scott Melker corrected O’Leary by distinguishing types of institutions in that crypto-native hedge funds invest in digital assets.
O’Leary called these crypto-native hedge funds “rounding errors” and insignificant compared to big players such as sovereign wealth funds. O’Leary expects big players to enter and prices to continue to rise if regulation allows it.