Kraken CEO Jesse Powell: You Can't Rule Out A Crackdown On Cryptocurrencies

Kraken CEO Jesse Powell believes the crypto industry could be subject to regulatory crackdowns from governments around the world soon.

Governments Clamping Down On Cryptocurrency

With the rate at which cryptocurrencies have surged lately, the Bitcoin exchange CEO said there could be some crackdown. According to him, regulatory uncertainty around crypto isn’t going away anytime soon. Not only did Bitcoin just hit a record high price of more than $63,000 today, [coin_stats_table symbol="BTC"] but there has also been an explosion of the NFT market, and the DeFi space has seen massive growth in recent times. The total market cap of all crypto assets also expanded by 600% to well over $2 trillion this year. In this vein, Powell said there was a probability that governments would lay out tougher rules. Speaking in a recent CNBC interview, Powell also noted that the US has only considered immediate consequences when it comes to the crypto industry.

“I hope that the US and international regulators don’t take too much of a narrow view on this. Some other countries, China especially, are taking crypto very seriously and taking a very long-term view."

However, even though the US is treading carefully, Powell does not think the country would ban cryptocurrency. He said that banning cryptocurrency at this stage would only make more people interested in investing in it, and it would also mean that the government sees the asset as superior to its currency. Apart from the US, another country taking a tough stance against crypto is the Asian nation, India. India is one of the strictest countries when it comes to cryptocurrencies. Rumors have been spreading about how the government is considering banning digital currencies and penalizing anyone who holds or trades them.

Regulators Sounding The Alarm About Crypto

For a long time, cryptocurrencies have often been associated with illicit activities. One reason for this is that transactions with it are usually pseudonymous, and another reason is its high volatility. In March, the European Securities and Markets Authority (ESMA) warned investors about the increasing risks associated with crypto investing. The warning was published in its latest report on Trends, Risks, and Vulnerabilities. US Treasury Secretary Janet Yellen has also previously warned about the use of Bitcoin for money laundering, terrorist financing, and other illegal activities. Meanwhile, a new crypto council called the Crypto Council for Innovation had been formed by crypto firms Fidelity, Coinbase, Square, and Paradigm to lobby for fair regulations surrounding cryptocurrency in the U.S.