Following the spectacular collapse of numerous CeFi companies last year, all regulatory eyes have been focused on the crypto industry.
Joseph Lubin, the CEO of ConsenSys, also weighed in on the matter during the Building Blocks 23 event in Tel Aviv, saying his organization wants to collaborate with global watchdogs to introduce more friendly regulations.
- 2022 will go down as one of the hardest for the cryptocurrency space, having seen the decline of numerous CeFi participants, such as BlockFi, Voyager, and Celsius, among others.
- Somewhat expectedly, these loud bankruptcies led to the question of whether DeFi is the more suitable option, and Lubin said he believes it is indeed.
- He noted that DeFi “worked all the way through very beautifully” while also indicating that CeFi was a “self-limited process,” which grew too fast before eventually blowing up just as quickly.
- Nevertheless, he explained that he didn’t want to “throw everybody under the bus” as some CeFi companies remain operational and in good standing. He also added that centralized financial firms helped onboard new users as the cryptocurrency industry was growing.
- As such, they managed to pave the way for decentralized finance, which is where the digital asset space is heading, Lubin noted.
- Speaking of regulations, the ConsenSys exec asserted that his company wants to cooperate with global watchdogs to incorporate “friendly regulations” but admitted that this is not as easy as it sounds.