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Coinbase has been the main news in the cryptocurrency industry over the last few days, with its public debut via a direct listing grabbing attention from all over the world. Coinbase is, in effect, the first major cryptocurrency firm to go public, demonstrating the industry’s explosive development. Although there is a lot of hope, some observers have also pointed out some inherent threats, one of which is CoinShares’ Meltem Demirors.
In a recent interview, Coinbase CEO Brian Armstrong expressed his thoughts on the topic, saying that cryptography and legislation are two of the main threats to cryptocurrencies and related institutions today.
This is an intriguing point of view, particularly given that Coinbase can face increased scrutiny as people attempt to understand the nascent market. As a result, sector enforcement is one of the market’s most significant risks, ranking “right up there with cybersecurity.”
In particular, given that Coinbase is an online marketplace that handles digital currency, the company expressly mentioned cyber attacks as a risk factor in its S-1 filing.
Next, the executive said that Coinbase is “very happy to engage” with US lawmakers on how we can more thoughtfully develop this business and this venture. Furthermore, when it comes to future enforcement, Armstrong said,
“We’re very excited and happy to play by the rules, and basically, we just ask that, hey, we want to be treated on those level playing field with traditional financial services at the very least and not have any kind of punishment for being in the crypto space.”
This is a very good argument, particularly given the numerous myths regarding cryptocurrencies.
For example, US Treasury Secretary Janet Yellen has consistently said that Bitcoin and other cryptocurrencies are being used for terrorism funding, Ponzi schemes, purchasing illicit products, and all in between. Understandably, the Treasury’s FinCEN department drafted stringent regulation, which has been indefinitely delayed.
Finally, the interviewer inquired of the CEO, “What do you think of the hype surrounding NFTs?”
The Co-founder, who is a supporter of NFT, responded,
“I think this is gonna be like the internet… or fashion. There’s sort of a new trend that happens periodically and NFTs is the most recent one.”