Impact of SEC Lawsuits on the Development of Cryptocurrency Industry
Impact of SEC Lawsuits on Cryptocurrency Industry
After the SEC sued Xan, the latest news is that the assets of Xan’s American exchange have been frozen, and relevant regulatory agencies require Xan to return the assets of American users within a certain period of time.
After this news came out, users around me who had assets in Xan were trying to withdraw their assets from Xan as much as possible to prevent the situation from further expanding, and even their own assets in Xan from encountering accidents.
If this situation continues to develop, it is probably the beginning of a large-scale run. Just like banks, exchanges are most afraid of users running on assets.
So next, Xan will really have to go through a period of severe testing. And this test is the touchstone to test whether Xan really maintains a certain bottom line in business operations and processes. If it does not seriously misappropriate user assets, it is probably able to “cross the calamity” safely, but if it really seriously misappropriates user assets, the subsequent chain reaction is probably unimaginable.
Regardless of whether Xan can withstand this test, this incident will probably have a greater impact on the market in the short term. But in the long run, the impact is not that great. CEX is a rigid demand for many users, especially novice users, in the encrypted ecology, so CEX will exist for a long time. Even if an exchange exits the market, other exchanges will rush in to occupy the share it left.
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In this incident, I think what we retail investors should pay more attention to is the safety of our own assets.
In a previous article, I once wrote that there will be no more “black swans” in the circle this year. At that time, I wanted to express that after FTX went bankrupt, users with a little sense of anxiety should think that since the second largest exchange will also have problems, who can guarantee that larger exchanges will not have problems?
If there is such awareness, then users will take corresponding measures more seriously to protect their assets-for example, not storing a large amount of assets on exchanges. If they can do this, then even if more serious accidents occur, users can bear the risks. Since they can bear the risks, there is no such thing as a “black swan”.
In this ecosystem with such high risks, nothing is more important than the safety of our own assets.
We hope that all of our readers’ assets are safely stored in their own wallets.
From a macro perspective, the SEC’s large-scale lawsuit is sure to be highly regarded by all regions operating in the encrypted industry around the world, and the development process of the situation will certainly become a model for other regions to learn from – especially what kind of supervision will really promote the development of the industry without stifling innovation.
So from this perspective, the reference and reference significance of this lawsuit is very important, and it is also an important node for the future standardization and legalization of the entire industry.
From the perspective of specific subdivided industries, no matter what this lawsuit will eventually develop into, regions around the world, especially those that are ready to allow the legal and compliant development of the encrypted industry, will definitely regulate exchanges more strictly – licensed operation of exchanges is the general trend.
And the licensed operation of exchanges will eventually evolve into KYC certification for all users. To be able to legally and compliantly participate in this ecosystem, the best places in the world will surely be places that allow the legal and compliant development of the encrypted industry.
Therefore, from this perspective, for users in mainland China in the future, the importance of Hong Kong will become more and more obvious. For Hong Kong, the encrypted industry may really become the starting point for pushing Hong Kong to a new height.