Binance CEO Speculates Coordinated Efforts to Destabilize Crypto
The cryptocurrency market went through a whirlwind of challenges in 2022, and it looks like there will be no respite this year as well. As a result of successive regulatory roadblocks and the subsequent failure of notable companies, crypto has found itself in a queer position that almost seems like an orchestrated effort being pulled off to reject it.
Binance CEO raises concerns about crypto
A similar opinion has also been expressed by Binance CEO, Changpeng “CZ” Zhao. In a recent chirpinghe speculated that – considering all that was happening in the crypto space – it looked like a coordinated attack was taking place to “shut down crypto-friendly banks” that would be detrimental to the industry as a whole in the long run.
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However, he points out that while these efforts have affected crypto to some extent, traditional financial institutions are currently failing, while blockchains remain operational due to their decentralized nature, preventing any central authority from taking command. As can be seen in Bitcoin’s price, the flagship cryptocurrency has been able to hold on to its coveted $20K level even after the deluge of regulatory hurdles, negative press reports and media coverage.
In recent times, prominent US authorities, including the Federal Reserve, OCC, FDIC, SEC, NYAG, NYDFS, and DOJ, along with influential members of Congress, have seemed eager to destabilize the growing crypto industry that has challenged the traditional market for some. time now. Rumored as an “Operation Choke Point”, the US is making it increasingly difficult for crypto businesses to operate and sustain.
Does crypto pose a threat?
Cryptocurrency has recently established itself as a viable alternative to a number of conventional financial products and services available in the country. For example, compared to the meager 0.1% interest rates on savings accounts offered by US banks, the staking feature of cryptocurrencies enables users to earn rewards of up to 25% annually in certain scenarios. As a result, the Securities and Exchange Commission (SEC) recently penalized Kraken, a California-based crypto exchange, and even forced the firm to suspend its efforts for US clients.
It is still important to emphasize that right now there has been no real evidence of a government conspiracy to leverage political authority to shut crypto off the US banking rails. But with back-to-back encryption and the development of certain scenarios has certainly raised doubts in everyone’s mind as it is difficult to pass it off as a matter of coincidence.
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