Companies Dealing With Crypto Need Rules, Not Crypto Itself: Winklevoss

Cameron Winklevoss’ statements reached our crypto news today for stating that crypto doesn’t need rules but the companies who deal with them need the rules. His statement comes as a response to the happenings with the QuadrigaCX crypto exchange.

The Winklevoss twins are among the business owners who demanded the crypto market to be regulated since their Gemini exchange is ‘’fully regulated.’’ They aimed to change the image of the crypto industry as a place where theft, hacks and fraudulent activities occur by using cryptocurrency.

Their campaign that crypto needs rules didn’t really catch the eye of most bitcoin users. Bitcoin was initially created so people can make transactions without having ‘’to trust’’ anyone. Cameron noted:

 “QuadrigaCX was editing its own internal ledger to move customer funds into special accounts controlled by insiders, who were allowed to trade using those funds and even transfer cryptocurrency out to external wallets.’’

Companies that offer custodial services by holding the bitcoins of their customers should be regulated in order to prevent another QuadrigaCX scandal happening. He added:

‘’Every incident in crypto to date has been/would have been PREVENTABLE w/ proper rules and thoughtful regulation.’’

Describing the failure of Mt.Gox and Quadriga, Cameron addressed the problems that still hover around in the crypto industry and he told while speaking at the Southwest Conference in Texas by saying:

‘’There are a lot of carcasses on the road of crypto that we’ve seen and learned from. At the end of the day it’s really a trust problem. You need some kind of regulation to promote positive outcomes.’’

The twins experience growth over the past few years and said that as long as crypto is growing, Gemini will continue to grow as well. They pointed out that the company had only 20 employees at the beginning and that they reached up to 200 nowadays. Their growth means that the stakes are becoming much higher today. Cameron wrote in a blog post:

 “As crypto has grown up a lot so has Gemini. We’ve grown from 25 to 200 employees…In 2016 crypto was niche — today it is something — tomorrow it will be everything.’’

According to him, it is time to regulate the industry because even the ‘’trustless’’ cryptocurrencies will require a trusted third-party.