Ava Labs President John Wu warns that the cryptocurrency industry will be negatively affected by the removal of on-ramps into the cryptocurrency ecosystem.
Asked to comment on Silvergate Bank’s closure plan by Caroline Hyde of Bloomberg, the president of development firm Avalanche (AVAX) says it will be much harder for the cryptocurrency industry when all intermediaries in the cryptocurrency ecosystem disappear. digital assets.
“It’s clearly going to be much more difficult when all the intermediaries and seemingly all the intermediaries and on-ramps for institutions and individuals in the crypto ecosystem are removed one by one. Either through regulation, bad actors or risk management, or bad fundamentals like the Silvergate case. So it’s not easy. It makes it harder.”
According to Wu, crypto companies moving out of the United States could be one of the consequences of banks and other intermediaries stopping servicing the digital asset industry.
“The problem is that if there are no gateways, intermediaries to help new institutions get into this space, that will slow down the growth of the space.
The other problem is even healthy balance sheets in space, they need little things… banking services.
Crypto is a fintech business and legitimate businesses need banking services that pay people, to do things that all other businesses do.
If we remove the banks that help these companies do that, we are removing the desire for companies to be on the ground. And unfortunately, American companies will go overseas to get banking and other things they need just to operate.”
The president of Ava Labs says that the best way forward is for the cryptocurrency industry to engage with regulators and legislators.
“I think we need to open a healthy dialogue. It can’t be just one way. And if that happens, it will bring back a lot of capital markets and a lot of innovation.
Otherwise, as I’ve been saying, things will continue to move offshore because of the certainty and the rules and regulations that are happening in Europe, even in Asia.”
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