Celebrity Shark Tank investor Kevin O’Leary has said he will keep his crypto assets on regulated crypto exchanges despite FTX’s recent decline.
According to Kevin O’Leary, crypto cold storage (cold wallet) was not a good option for him or for companies that need to maintain a certain percentage of exposure to the industry. He said that cold storage, ie offline, does not provide the kind of liquidity they will need to run their day-to-day operations.
Mr O’Leary said these assets must remain available for trading at all times in order to remain “within their diversified mandate”.
Investor Kevin O’Leary uses Canadian exchange BitBuy for his transfers
In the same interview, the famous investor said that he would transfer his assets from the United States to the BitBuy exchange, based in Canada.
He also indicated that he had several opportunities in Europe, Dubai and even the United States, but chose to place his assets on the Canadian stock market because the country offers “the most advanced regulatory environment.” Mr O’Leary added that BitBuy is “the safest place on earth to put assets”.
“Billions of dollars will leave unregulated exchanges and look for a place in the world where they can be safely settled. Right now, it’s about Canada.”
Investor supports Sam Bankam-Fried
Kevin O’Leary has also been criticized for saying he will continue to support the former FTX CEO. Sam Bankman-Fried. The investor, who also signed a contract last year as a spokesperson for FTX, said the fallen founder was one of the smartest traders in the crypto space.
These statements were made in response to the hypothetical question of whether he would reinvest his holdings in Bankman-Fried. So he stated that he would indeed do so, albeit without giving him operational control of the assets, but only commercial control.
Meanwhile, O’Leary mentioned the loss of his assets and investments in FTX.com and FTX US, but did not disclose their amount. He only noted that the stock market crash could be a beacon of hope for crypto, encouraging more corrections.
FTX failure will encourage better crypto regulation
Kevin O’Leary said incidents like the FTX collapse are unlikely to happen again, as it should encourage greater regulation of the industry.
“Institutional investors will never experience such a situation again. We’re just not going to make the capital work until this is all sorted out,” he said.
He added that he would campaign for better regulation of the crypto sector and felt that regulators should start by passing the Stablecoin Transparency Act. Indeed, this is one of several cryptocurrency-related bills currently before the US Congress that will require greater transparency from issuers of stablecoins.
“If I go pour in serious capital in a broker-dealer, or in an exchange, shall be an exchange that is regulated, transparent and has the same rules as all other exchanges dealing in stocks and bonds.”
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