With professional and organizational investors focusing on and the growing numbers of enterprises getting ready to allow across-the-border payments, it would seem that virtual assets are accessible in the financial mainstream, although still in a state of unpredictability.
Interestingly, this continues to be a phenomenon in which the virtual digital asset environment and its key participants are always two or one step behind from yet another dispute of failing to follow streamlined guidelines and being spearheaded by strange individuals.
However, if virtual digital assets were more respectable, welcoming industry and stable, would everyone be actively involved with the virtual assets and invite changes to the industry?
Since BTC was launched over a decade ago, we have witnessed gradual growth and strength; however, some collapses and criminal activities related to the crypto industry are also piling up. As a result, the virtual asset sector is likely dead, as it has been continuously purported.
Terra should have been the last sign the previous year, killing the crypto industry for good. However, three Arrows Capital and Celsius have put in the effort for good measures. Then came the downfall of one of the major virtual asset exchanges, FTX, which could have brought down and buried the whole virtual asset sector.
How the sector succumbed to all those challenges but is still alive and kicking, with the increase of exchange firms and their attempts to go legal, more blockchain technology than ever, developers relentlessly upgrading their services, non-fungible tokens, and decentralized finance participating along, and with initial coin, BTC relishing a drastic and amazing start in 2023.
In addition, all these events are happening, and the Federal Securities and Exchange Commission has the crypto community strongly in its claws.
What the Virtual Asset Community Needs To Do
Following the FTX downfall, one major virtual asset service provider and other crypto exchanges are forced to ascertain good housekeeping. Most importantly, this would take the approach of presenting proof of reserves and proof of securities which, as a result, should provide proof of wealth.
Some challenges might be faced when presenting proof of securities, although this is a zone for experts to scrutinize and validate thoroughly. Moreover, virtual asset service providers and other exchanges can show a willingness to move in this direction.
In a universe where the economy has evolved securities and regulatory guidelines, it was considered that an enterprise as famous as the collapsed FTX must function within specific practical and ethical boundaries.
Although we have witnessed that about the collapsed FTX and the likes, it was not just a matter of needing more oversight but also common, special coordination toward long-term sustainability and forward thinking.
A Clash of Philosophies
It is worth noting that virtual assets have always functioned without authorization and definitely, without capturing the undue attention of current organizations and having a conventional method of functioning. In addition, it also indicates that virtual crypto assets are vulnerable to recurring mistakes that outdated financial methods have tried to prevent.
Furthermore, if the virtual digital asset community desire to prevent the probability of the industry’s destructive hefty handedness from sometimes intimidating regulators, then it would be convenient to showcase a significant volume of self-governance while making it transparent that exchanges and networks are being compliant, honest and open to its investors.