Regulatory review can be good for the industry

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The recent cryptocurrency regulatory review is “very healthy” for the industry, crypto billionaire Wu Jihan told CNBC on Tuesday.

“I think such a kind of crackdown can be good for the industry in the long run,” Wu said on the sidelines of the Asia Tech x Singapore conference.

Wu, co-founder and chairman of digital asset financial services platform Matrixport, said the regulatory measures eliminate bad players while improving the reputation of the industry.

Still, the regulatory pressure is “stronger than before,” said Wu, who is also the former CEO and chairman of bitcoin mining giant Bitmain. Wu’s net worth was estimated at $ 1.8 billion in November, according to Forbes.

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“It’s a rapidly growing financial industry,” Wu said. “It’s almost becoming a trillion dollar market capitalization industry, and over 10% of US citizens are already involved in cryptocurrency. . “

Regulatory concerns weighed heavily on investor sentiment, putting pressure on cryptocurrency prices. Bitcoin surged during the first part of 2021 and hit an all-time high, but closed the first half down about 47% from its all-time high.

In April, US Federal Reserve Chairman Jerome Powell called cryptocurrencies “vehicles of speculation.”

Meanwhile, China’s crypto crackdown has been ongoing since at least 2017, but has escalated this year. Energy-intensive cryptocurrency mining operations have been shut down while major payment services such as Alipay have been urged by the People’s Bank of China not to provide services related to cryptocurrency activities.

Singapore’s acceptance of crypto

As regulators in the United States and China have stepped up their scrutiny of the crypto industry, Wu said Singapore, where Matrixport’s headquarters are located, is a global financial center that is also relatively open to business. innovation in financial technologies.

“I think it’s a great place to build a global brand, a financial services brand,” he said.

Wu is not alone. The Financial Times reports that other cryptocurrency organizations are also seeking refuge in the island nation.

“The government is reasonable, very efficient and accessible,” Wu added. “There are many good reasons for Singapore to be the hub of crypto innovations.”

CNBC’s Arjun Kharpal contributed to this report.

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