Crypto regulation is being addressed these days by Synthetix founder. Check out what he has to say about the matter below.
Synthetix founder addresses crypto regulation
According to Kain Warwick, the founder of Synthetix (SNX), it’s difficult for decentralized finance (DeFi) ventures to avoid regulatory risks in the United States.
In July, Warwick established Infinex, a decentralized perpetual exchange that employs Synthetix for its liquidity.
While acknowledging the regulatory risks associated with the initiative, he claims that some US regulators are disregarding the advantages of open and transparent infrastructure that powers financial markets.
Warwick believes that regulatory agencies in the United States have lost sight of their mandate, and that the courts will be responsible for resolving this issue. He argues that the stance of US regulators is completely opposite to their mandate.
DeFi relies on a cutting-edge technology that enhances market transparency and efficiency, and although it isn’t perfect, it should be given an opportunity to demonstrate its potential in the market.
This technology has more potential than the current system of a bunch of black boxes built on 50-year-old legacy code that is barely kept in line by millions of pages of rules and regulations.
Warwick also made sure to say the fact that he built Infinex because he noticed an inefficiency in the Synthetix ecosystem.
“And the best part is no one can stop me. The same goes for other protocols, don’t like the Aave UX (user experience), go and fix it and if you are right, you will be able to charge fees for solving this inefficiency.
This is the power of DeFi, incumbents can be disrupted from both within and without. This is impossible in TradFi (traditional finance) and innovation suffers because of it.”
Stay tuned for more news from the crypto space and make sure to keep your eyes on the market.
