As part of collective responsibility, cryptocurrency exchanges should take up the mantle of enhancing financial knowledge about digital assets so that investors are aware of downside factors, says Topp Jirayut Srupsrisopa, the CEO of Thailand-based crypto exchange Bitkub.
Volatility in the crypto market has emerged as one of the largest downside risks. This is an issue that Srupsrisopa highlighted because bearish prices do not hinder uptrends in cryptocurrencies. He noted:
“You have to differentiate between a short-term shock that is happening in the market and a long-term view.”
For instance, Bitcoin (BTC) slipped below the psychological price of $20K for the first time in 18 months based on tightened macroeconomic factors like increased interest rates.
Nevertheless, the leading cryptocurrency has gained momentum and reclaimed this level because it was hovering around $21,100 during intraday trading, according to CoinMarketCap.
With proper financial education, crypto users will be able to make smart decisions, according to Srupsrisopa. The Bitkub CEO commented:
“We have always said not to put all your eggs in one basket and not to borrow money to speculate. We need to get the right financial education, not just in cryptocurrency but in the entire stock market.”
As the largest crypto exchange in Thailand, Srupsrisopa acknowledged that Bitkub welcomes the regulations taking a leading role because they will make the industry safer. He added:
“Everyone is doing their job. Regulators are trying to reduce risk and make sure things are in place in terms of consumer protection and financial stability. We are trying to build a digital infrastructure for the country.”
Meanwhile, Sam Bankman-Fried, the CEO of crypto exchange FTX, noted that the Federal Reserve (Fed) was responsible for the downturn in cryptocurrencies.
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