Sam Bankman-Freed: “cryptocurrencies are in dire need of adequate regulation” – Bits Media

Sam Bankman-Fried, CEO of the FTX cryptocurrency exchange, summed up the results 2021 of the year in the cryptocurrency industry and emphasized, that the main requirement for the development of the industry is regulation.

As noted by Sam Bankman-Fried (Sam Bankman-Fried), now cryptocurrencies enjoy about 200 Million people around the world, and it's a significant user base. Among the advantages of the industry, he named the spread of smart contracts and the emergence of scaling solutions, which lifted strict restrictions on the throughput of first-level blockchains. Now such solutions can be processed up to 50 000 transactions per second.

but, many industrial-grade applications may require millions of transaction throughputs, and while blockchains cannot provide this level of performance. Bankman-Fried noted, what, despite the huge potential of using digital assets for payments, there are still too few real examples of such application. He advised cryptocurrency industry participants to focus on working with regulators:

"What are we still missing?? Let's start with the obvious: regulation. There was a lot of friction between the industry and regulators and often participants on both sides felt frustrated. AND, which is also important, often companies are unclear how to formalize the process of issuing tokens or registering a platform. This complicates the safe development of the industry and at the same time makes it difficult for institutional players to invest. On the other side, It’s also difficult for regulators to work with cryptocurrency companies.”, – Bankman-Fried wrote.

He considers, what, perhaps, Stablecoin projects are a better place to start, however, transparency must be ensured, audit and reporting tools. This will solve 80% questions from regulatory authorities. It is also necessary to develop common market standards for cryptocurrency companies, trade and anti-money laundering.

"Everything is as usual. If you want to increase trust in the industry, need to work with regulators. But it is necessary to pay attention and quality of projects, code quality. And every case of fraud reduces this trust. Every time, when we do something wonderful, we are moving forward. But every time, when we screw up, we take a step back. We need to move gradually, step by step, but always forward!», – Bankman-Fried wrote.

He added, that computer games could be another promising area, the number of users is in the billions, and incomes - hundreds of billions of dollars. At the same time, “it is necessary, for virtual worlds to capture even more attention thanks to NFTs, and not lose the interest of users". FTX CEO previously said, that next year will be marked by NFTs. He considers, that most digital content will be tied to collectible tokens.