Prominent Shark Tank investor Kevin O’Leary has said he will keep his crypto assets on regulated cryptocurrency exchanges, despite the recent fall of FTX.
According to Kevin O’Leary, cold crypto storage (cold wallet) was not a good option for him or for companies that need to maintain a certain percentage of exposure to the sector. He said that cold, i.e., offline storage does not provide the kind of liquidity they would need for their day-to-day operations to run smoothly.
Mr. O’Leary said these assets must remain available for trading at all times to stay “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 Canadian-based exchange BitBuy.
He also indicated that he has several opportunities in Europe, Dubai and even the United States, but has chosen to place his assets on the Canadian stock exchange because the country offers “the most advanced regulatory environment”. O’Leary added that BitBuy is “the safest place in the world to place assets”.
“Billions of dollars will leave exchanges unregulated and seek out a place in the world where they can be safely placed. For now, it’s Canada.”
Investor backs Sam Bankam-Fried
Kevin O’Leary also came under fire for saying he would continue to support former FTX CEO Sam Bankman-Fried. The investor, who also signed on last year as a spokesperson for FTX, said the fallen founder was one of the brightest traders in the crypto space.
These statements were made in response to a hypothetical question of whether he would reinvest his Bankman-Fried holdings. He then claimed that he would indeed do so, albeit without giving him operational control of the assets, just commercial control.
Meanwhile, O’Leary mentioned the loss of his assets and investments in FTX.com and FTX US, but did not disclose the amount. He just pointed out that the stock market crash could be a beacon of hope for cryptocurrencies, encouraging more regulation.
The failure of FTX will encourage better regulation of cryptocurrencies
Kevin O’Leary said incidents like the FTX crash were unlikely to happen again, as it should encourage more regulation of the industry.
“Institutional investors will never experience a situation like this again. We are not going to run capital until all of this is regulated,” she said.
He added that he would campaign for better regulation of the cryptocurrency industry and believed that regulators should start by passing the Stablecoin Transparency Act. In fact, this is one of several cryptocurrency-related bills currently before US Congress. United States, which will require greater transparency from stablecoin issuers.
“If I’m going to invest serious capital in a broker-dealer, or an exchange, it will be a regulated exchange, transparent and with the same rules as all other exchanges dealing with stocks and bonds.”
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