Union Square Ventures’ Fred Wilson: Strict SEC Regulations Could Push Crypto Innovation to Asia
One of the top global cryptocurrency exchanges, Poloniex, recently announced the geofencing of nine (9), digital assets.
According to Poloniex, this development was due to the uncertainty of cryptocurrency regulations in the US, potential retribution of the SEC (Securities and Exchange Commission) to be precise.
Union Square Ventures Co founder, Fred Wilson, recently spoke on how the Securities and Exchange Commission's ruling to delist certain assets from US cryptocurrency exchange platforms was damaging to the crypto community, stating that this restriction will eventually cause innovations in the US to find solace in the Eastern regions (Asian countries).
Movement To Asia
“In 5-10 years when we look back and consider why the next big tech sector centered itself in Asia and not in the US, it will be the SEC’s unwillingness to create new rules to regulate new assets that will be the cause”
Using the crypto exchange, Coinbase as an example, he said the “most trusted/complaint/secure/safe” crypto exchanges are US-based, so pushing this platforms to Asia will be “detrimental to safety and security”
Preston Byrne, a Byrne & Storm attorney, in response to Wilson's tweet said that the “alleged misconduct” in Asian countries would be a major setback for the whole cryptosphere. He added that “bad actors” are the major threat to Bitcoin’s adoption, and they should swiftly the located and eliminated.
Trading Region And Market Monitoring
He called for improved monitoring of crypto trading regions, saying:
“95% of trading volume is faked. The Bitfinex/Tether saga is insane and only just getting started. If crypto is going to be adopted, we need to have more trust in our trading venues. That requires close supervision of trading venues and markets.”
The founder of BlockTower Capital, Ari David Paul, Also responded to the tweet:
“Hopefully we’re not headed toward a world where voluntary commerce can be stamped out globally. So for a global asset, this will always be an issue. Fortunately, you don’t need to care. $1b in CME future volume is real and traceable. Manipulation is temporary by nature.”
Possible Fraud Investigation
Byrne responded to Ari's tweet, saying that $3 million worth of USDT was the reason Finex and Binance was kept “afloat” and contributed to huge transaction volumes and these platforms were a “hair's breadth away” from a full-on fraud investigation.