China’s feud with cryptocurrencies entered a dramatic new chapter late last week after its central bank — the People’s Bank of China — in tandem with other regulatory bodies put out a notice banning cryptocurrency-related transactions in the country.
Even for an industry veteran like Sam Bankman-Fried, CEO of crypto exchange giant FTX, the long-term impact of China’s latest crypto clampdown is still unclear. But for those looking for hints to what all this could mean, Bankman-Fried says the RMB-to-crypto market might be a good place to start.
“There’s been a ban of centralized exchanges, but there was basically an allowance of peer-to-peer RMB-to-cryptocurrency in some specific instances,” Bankman-Fried told Forkast.News in a video interview. “That is a thing that I would be looking at as a canary in the coal mine here, and it’s probably the most likely thing to get cracked down on.”
Watch Bankman-Fried’s full interview with Forkast.News Editor-in-Chief Angie Lau to learn more about the PBOC’s impact on the global crypto market, the industry response, how FTX measures other jurisdictions for business opportunities, and more.
01:44 Reaction to China’s crypto ban
03:57 Observations on market movements following Evergrande and China’s crypto ban
06:35 Is the market being too bullish on DeFi?
10:27 China’s crackdown triggers
12:47 FTX cruising to the Bahamas
16:31 Gold standards of crypto regulations
22:13 Concerns about regulatory law
24:11 FTX Chinese staff reactions to the crackdown
26:48 Long-term takeaways from the PBOC announcement
---
HIGHLIGHTS
Is the market being too bullish on DeFi?
“Probably, the market's being a little bit overconfident in that belief. Because first of all, you can imagine that there might be throttling on websites associated with decentralized exchanges in China. You could imagine actually similar sorts of clampdowns placed on those as you see on some centralized exchanges. But nonetheless, there is certainly some justification for it, and it is very strongly what the market is implying.”
FTX cruising to the Bahamas
“That was not a decision that was just sort of made on the fly. There's been movement there for a while. One piece of this, probably the most exciting piece of this, has been the forward-looking stance taken by the Bahamian regulators, establishing one of the world's first comprehensive regulatory regimes for cryptocurrency, which includes both spot and derivatives marketplaces… And another piece of this, which is actually quite important, frankly, it's quarantine. It's important for me to be in a place where I can get in and out without weeks spent in hotels for meetings and conferences.”
China’s crackdown triggers
“When you look at what the stance that the central government has taken on Ant Financial, Didi and on a lot of other large tech players, I think you didn't see a parallel there to where there are threats of clamping down, they’re threats of cutting off access to new users or maybe even existing users. On one side, you have the direct capital flight concern. But on another side, you've also seen just concern about the growing influence of parallel economic systems in China and of technology platforms that might be getting larger than the government feels comfortable with.”
Gold standards of crypto regulations
“One of the biggest things [for] us, like in every other sector, the majority of volume trades in derivatives in crypto… That's what we see as the gold standard of a regulatory regime for crypto these days, is having a regime for crypto futures. If you don't have that, you don't have a regime for more than two-thirds of the volume in the world. That makes it tough for there to be a real industry migration to a place. If you look at, for instance, the top exchanges in the world, you go down them, how many of them are only spot? Very few of them, actually.”
---
#Crypto #Blockchain #BlockchainTechnology #DigitalAssets #Cryptocurrency #DeFi #FTX #SamBankmanFried #CryptoBan #China #RMB #PBOC #CryptoExchange #Derivatives
Even for an industry veteran like Sam Bankman-Fried, CEO of crypto exchange giant FTX, the long-term impact of China’s latest crypto clampdown is still unclear. But for those looking for hints to what all this could mean, Bankman-Fried says the RMB-to-crypto market might be a good place to start.
“There’s been a ban of centralized exchanges, but there was basically an allowance of peer-to-peer RMB-to-cryptocurrency in some specific instances,” Bankman-Fried told Forkast.News in a video interview. “That is a thing that I would be looking at as a canary in the coal mine here, and it’s probably the most likely thing to get cracked down on.”
Watch Bankman-Fried’s full interview with Forkast.News Editor-in-Chief Angie Lau to learn more about the PBOC’s impact on the global crypto market, the industry response, how FTX measures other jurisdictions for business opportunities, and more.
01:44 Reaction to China’s crypto ban
03:57 Observations on market movements following Evergrande and China’s crypto ban
06:35 Is the market being too bullish on DeFi?
10:27 China’s crackdown triggers
12:47 FTX cruising to the Bahamas
16:31 Gold standards of crypto regulations
22:13 Concerns about regulatory law
24:11 FTX Chinese staff reactions to the crackdown
26:48 Long-term takeaways from the PBOC announcement
---
HIGHLIGHTS
Is the market being too bullish on DeFi?
“Probably, the market's being a little bit overconfident in that belief. Because first of all, you can imagine that there might be throttling on websites associated with decentralized exchanges in China. You could imagine actually similar sorts of clampdowns placed on those as you see on some centralized exchanges. But nonetheless, there is certainly some justification for it, and it is very strongly what the market is implying.”
FTX cruising to the Bahamas
“That was not a decision that was just sort of made on the fly. There's been movement there for a while. One piece of this, probably the most exciting piece of this, has been the forward-looking stance taken by the Bahamian regulators, establishing one of the world's first comprehensive regulatory regimes for cryptocurrency, which includes both spot and derivatives marketplaces… And another piece of this, which is actually quite important, frankly, it's quarantine. It's important for me to be in a place where I can get in and out without weeks spent in hotels for meetings and conferences.”
China’s crackdown triggers
“When you look at what the stance that the central government has taken on Ant Financial, Didi and on a lot of other large tech players, I think you didn't see a parallel there to where there are threats of clamping down, they’re threats of cutting off access to new users or maybe even existing users. On one side, you have the direct capital flight concern. But on another side, you've also seen just concern about the growing influence of parallel economic systems in China and of technology platforms that might be getting larger than the government feels comfortable with.”
Gold standards of crypto regulations
“One of the biggest things [for] us, like in every other sector, the majority of volume trades in derivatives in crypto… That's what we see as the gold standard of a regulatory regime for crypto these days, is having a regime for crypto futures. If you don't have that, you don't have a regime for more than two-thirds of the volume in the world. That makes it tough for there to be a real industry migration to a place. If you look at, for instance, the top exchanges in the world, you go down them, how many of them are only spot? Very few of them, actually.”
---
#Crypto #Blockchain #BlockchainTechnology #DigitalAssets #Cryptocurrency #DeFi #FTX #SamBankmanFried #CryptoBan #China #RMB #PBOC #CryptoExchange #Derivatives