Concerns regarding cryptocurrency are present among investors. Numerous events, such the bankruptcy of Celsius, FTX, and failed DeFi ventures have added to this dread as the ongoing crypto carnage cut the market capitalization of all cryptocurrencies by more than half. Raj Chowdhury, CEO of PayBito, voiced his confidence for the future but stated that in order for crypto enterprises to succeed in the long run, they must increase transparency and instal more stringent security standards similar to TradFi.
Japanese financial regulators have noted that the absence of crypto legislation and lax internal control and governance are the primary causes of the issue, notwithstanding the widespread uproar regarding crypto regulation. They have asked international regulators to approach crypto in the same way as traditional banking and finance institutions, with stricter supervision, while rejecting the idea that crypto’s core technology has any significance.
“Crypto enterprises need to promise their clients with accountability, regular updates, routine audits, and transparent practical solutions,” the PayBito CEO claims.
Chowdhury offered potential solutions for boosting consumer confidence in current cryptocurrency businesses. His suggestions include starting a decentralised insurance system enabled by smart contracts to provide payments to impacted parties, much like traditional financial institutions. DeFi projects’ improved use and accessibility will help increase client financial security.
Chowdhury, who had previously criticised former FTX head Sam Bankman-Fried for the flagrant mismanagement of investor assets, said that cryptocurrency managers “must understand that crypto architecture is not designed to operate on fractional reserves like conventional banks, and they need to act accordingly.”
Chowdhury is the leader of the PayBito digital asset exchange, which has its US headquarters. It continues to be a leader in tech research studies as a white-label crypto exchange provider, having offered solutions in over 26 nations. With the first white-label cryptocurrency broker platform in the world, the company advanced its innovation by standardising access to cryptocurrency trading services.
Cryptocurrency’s quick rise to relevance among the general public is made feasible by the technology’s advancement of new norms in transparency, real-time visibility, and business process optimization. However, it is imperative to securely provide a guarantee for investor asset protection, which can be achieved by incorporating some TradFi objectives.