Justin Sun, the founder of the TRON network, offers financial support to anyone who builds a reliable bank that can meet the needs of the cryptocurrency industry. In a March 12 tweet, Justin Sun said that Silicon Valley Bank’s recent collapse showed the potential damage to many in the industry.
Justin Sun Offer
For these reasons, Justin Sun seems willing to work with anyone who is building a solid banking infrastructure that connects traditional finance and crypto. Huobi Global Advisors also said the bank could be developed locally or abroad. He added that the agency is critical to driving wider cryptocurrency adoption.
Binance CEO Changpeng ‘CZ’ Zhao speculated that the recent collapse of a crypto-friendly bank may have been a coordinated action by the authorities. Crypto-friendly institutions such as Silvergate and SVB have collapsed over the past few weeks.
Zhao’s speculation has been widely accepted by various stakeholders within the cryptocurrency community. Community members also likened the growing wave of scrutiny to Operation Chokepoint 2.0. This is a reference to President Obama’s Operation Choke Point.
At the time, the Justice Department made it difficult for unsuitable businesses, such as arms dealers, to do business with traditional banks. As a result, financial firms servicing these businesses face hurdles and penalties.
What do the rest of the market think?
Venture capitalist Nic Carter writes that recent events show that governments are trying to prevent traditional financial institutions from serving the cryptocurrency industry. Carter also added that regulators have explained that any exposure to public blockchains is an unacceptable risk.
Meanwhile, four U.S. lawmakers have questioned U.S. financial regulators’ recent regulatory moves targeting the cryptocurrency industry. Such extremes could spill over to other branches of the law, according to lawmakers.
Some cryptocurrency stakeholders believe that banks are threatening the cryptocurrency industry. Changpeng Zhao claims banks pose a risk to fiat-backed stablecoins. He also added that more cryptocurrency-backed stablecoins are needed.
Information source: compiled from COIN-TURK by 0x information.Copyright belongs to the author Alican Ülker, without permission, may not be reproduced