ftx-ceo-talks-about-cryptocurrency-regulation-and-angers-investors

FTX CEO talks about cryptocurrency regulation and angers investors

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Alongside Changpeng Zhao, Brian Armstrong, Arthur Hayes and Jesse Powell, today Sam Bankman-Fried, also known as SBF, is one of the biggest and most respected names in the cryptocurrency industry.

However, his statements regarding the regulation of the sector, published this Wednesday (19), irritated most of his followers.

While some of them said they were “disappointed”, others commented that not only did they stop following all accounts linked to SBF on social networks, but also abandoned their brokerage firm, FTX.

But after all, what did Sam Bankman-Fried say to irritate FTX customers and the cryptocurrency community as a whole so much?

SBF’s statements about regulation

In addition to the full text, which can be found on the official FTX website, Sam Bankman-Fried also gave brief comments on his thoughts on cryptocurrency regulation.

Separated by theme s, the text addresses sanctions, hacks, cryptocurrency listing, tokenization, customer protection, decentralized finance (DeFi) and stablecoins.

The biggest controversies were about the DeFi sector. In the text, SBF suggests that decentralized brokers need a government registration/authorization, which would totally go against their biggest appeal: not needing any of that.

Still on such services, Bankman- Fried suggests that these are in line with OFAC sanctions. Another point, also highlighted by Ryan Sean Adams, is the freezing of funds on the blockchain, pointing to the excerpt below.

“Finally: we should try to implement some system like the above to help us quickly respond to incidents. If this were updated quickly and immediately on-chain, we could make responses and asset freezes effectively instantaneous,” wrote Sam Bankman-Fried, CEO of FTX.

Community Reaction to FTX CEO Comments

In most comments, some of the more than 780 ) thousand followers of Sam Bankman-Fried were extremely against his opinions.

While some ask if the text was written thinking about the good of the community or FTX, others questioned the recent listing of the cryptocurrency Aptos in its brokerage, after all, it goes totally against the principles described by the same.

The most aggressive ones called SBF a “villain”, “satan” and even an “employee of the World Economic Forum”. . Finally, others have also started a movement to boycott FTX.

“If you allow decentralized technology to be compromised by the way regulators want to define these terms, so what is the purpose of cryptocurrencies”, commented one of them.

“If we could trust governments, we would not need cryptocurrency”

“Presumptively free” and “ illicit finance” doing a lot of heavy lifting here.

If you allow decentralized tech to be compromised by how regulators want to define those terms, then wtf is the point of crypto. Just go build on AWS

If we could trust govts, we *wouldn’t need cryptohttps://t.co/LBZnfDvGOF

— Jaded Mandarin ( @Hollywood_Dave) October 20, 2022

On a seemingly busy day for SBF, the FTX founder spent the day reading and responding to tweets. In addition to claiming he was misunderstood, he also commented that he will edit the DeFi section.

“Thanks to everyone who gave feedback. At the very least, I will update/edit to clarify that DeFi should not be censored.”

Thanks to everyone who gave feedback.

At the very least, I’m going to update/edit to clarify that DeFi should not be censored.

— SBF (@SBF_FTX) October 550, 2022

Finally, the text was so poorly received when Changpeng Zhao spoke about it. On the date, almost a year ago, the CEO of Binance even stated that “doing KYC was a right.”

In other words, people in general are not interested in the opinions of billionaires who own attitudes totally different from their words. After all, at the end of the day they are more concerned with earning money and especially power than helping someone.