Ripple top manager: “The collapse of FTX highlighted the need for regulation of the crypto industry”

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Ripple's director of policy for the Asia-Pacific region, Rahul Advani, believes that although the collapse of FTX has caused huge damage to the cryptocurrency industry, there is a way to protect against such situations.

According to Rahul Advani, nowThere are too many “hype” and unprofitable projects in the industry, as well as speculation. Therefore, during high-profile events, such as the collapse of FTX or Terra, such projects are extremely vulnerable. 

However, if blockchain or cryptocurrencies are applied to real-world use cases, it will protect the industry. In addition, adequate and transparent regulation is necessary:

“The collapse of FTX caused enormous damagecryptocurrency space and once again emphasized the need to regulate the industry. Legal regulations must provide high-quality consumer protection, but at the same time adequately address the risks that crypto companies face. I certainly wouldn't want heavy regulation that would kill innovation in the sector."

At the same time, Advani believes, regulators will not be able to put everyone under the same brush - the cryptocurrency sphere is very diverse, so it is necessary to approach it from a risk management perspective.

“We believe that the cryptocurrency sphere will remainfor a long time and will confirm its usefulness in real life. And this is exactly what projects should do - not create hype, but bring real benefits,” concluded Rahul Advani.

Earlier, US Congressman Tom Emmer said that poor and inept regulation of the cryptocurrency industry by the SEC was one of the reasons for the collapse of FTX.