June 7, 2023 12:06 PM | 2 min read
Paolo Ardoino, the chief technology officer of Bitfinex and Tether (CRYPTO: USDT), hinted at a potential escalation in regulatory scrutiny aimed at decentralized exchanges (DEXs), even as the U.S. Securities and Exchange Commission already initiated legal action against centralized exchanges such as Coinbase Global Inc (NASDAQ:COIN) and Binance (CRYPTO: BNB).
Ardoino expressed his perspective in an interview with Benzinga on an array of topics including the future expansion of Bitfinex and Tether, their focus on emerging markets and commitment to Bitcoin (CRYPTO: BTC).
“We are seeing what happened with the centralized exchanges in the last two days. However, it would be foolish to think that the decentralized exchanges are not going to be under scrutiny as well,” stated Ardoino, highlighting the shifting landscape in crypto regulation.
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Ardoino expounded his point, explaining that DEXs, although operating on blockchain technology, may still need to comply with regulatory obligations, particularly if they generate revenue for a certain group of individuals.
“The fact that they’re using a blockchain from a regulator’s point of view does not make them exempt from the fact that they need to conduct business… All these DEXs are creating revenues for a small group of people which could be conceived as a company and so the company would have some obligations,” he said.
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Also Read: U.S. Lawmakers Warn Crypto Regulation Could Be Years-Long Process Despite Increased Funding
Asked about his views on the SEC’s action against centralized exchanges in the U.S., Ardoino emphasized the necessity of clear guidance for the industry.
He referred to Coinbase and Kraken as examples, saying, “Their voices should be heard by the regulators because they created an industry there and they have talent. And this talent for this industry is asking for guidance, guidance that never came. So that is some concern, of course.”
He further stressed on the importance of sensible regulation and continuous dialogue between regulators and industry leaders.
“It’s extremely important that we don’t end up in a situation where regulations constrain the potential of blockchain technology to grow and modernize many industries,” he said.
Read Next: Coinbase CEO’s War Cry After SEC Sues Crypto Exchange: ‘We’ll Get The Job Done’
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