Never have members of the crypto community experienced a better time than this. When the price of Bitcoin continues to rise, the major altcoins experience their own autonomous bull rallies and Coinbase, one of the world’s leading exchanges, is about to hit the stock market. However, there are still hidden risks for the crypto community. For this reason the CEO of Kraken warns of a possible collapse of the crypto market.
Institutions and crypto companies
For many years, the world of cryptocurrencies has faced a great challenge in the governments of the world. Which, in general, are not so receptive to the idea of cryptocurrencies. Maintaining during the early days after the creation of Bitcoin an attitude of skepticism, compared to what they saw was a mere technological curiosity. Mutating later to the open rejection that several governments maintain today.
This has been problematic for the development of the crypto market infrastructure. Well, without the protection of the State, it is very difficult for the companies that make life in the crypto world to create businesses solid enough to gain the trust of the general public. Which has delayed the emergence of a solid financial infrastructure around virtual currencies like Bitcoin.
However, despite opposition from some governments, and slow work to modernize regulations from others, several companies have emerged and thrived in the crypto world. One of the most important of them being Coinbase, an exchange that now goes public, opening the doors to a greater relationship between the crypto world and traditional finance. Something that does not convince the CEO of Kraken.
Kraken CEO fears for the crypto market
And it is that, during an interview on CNBC, Jesse Powell, CEO of the cryptocurrency exchange Kraken, said that it is very likely that governments will introduce changes in the regulatory frameworks related to the crypto world, which will end up negatively affecting the value of the cryptocurrencies. cryptocurrencies, leading to a collapse of the crypto market. Thus, Powell warns of this risk especially in the United States. Something that would negatively affect the country considering that China is making significant efforts to gain an advantage in the sector:
«I think there could be some measure of repression. Something like that could really hurt cryptocurrencies and end the original use case, which was simply to make financial services accessible to everyone. I hope US and international regulators don’t take too narrow a view on this. Some other countries, especially China, are taking crypto very seriously and have a very long-term vision.».
In this way, the CEO of Kraken would be moving away from the optimism that prevails in the crypto world today. Remembering the possible setbacks that can occur, if governments decide not to implement progressive regulations, trying on the contrary to maintain control.