Crypto needs proper regulation – KuCoin CEO

Cryptocurrency exchange KuCoin recently revealed many new blockchain products, one of which was the launch of KuCoin Fiat Account – a facility that will grant global users access to deposit US dollars using a credit or debit card.

In an exclusive interview with Coin Rivet, KuCoin CEO Johnny Lyu, said the exchange was trying to continue to improve the experience for all classes of crypto investors by introducing advanced products with less complexity and lower fees.

“The KuCoin Fiat Account will help get more intenders on board, contributing to the mass adoption of crypto ahead,” he said, adding the company will be holding a campaign to reward its users.

Every day from 6pm until November 5, the first 100 users who buy USDT via KuCoin Fiat Account using Visa, Mastercard, or Balance will receive a 50% discount on their purchase.

Coin Rivet also asked Lyu for some general opinion on the company’s new product, dubbed KuCoin S – a dedicated social platform for crypto that would offer a world of benefits beyond simply trading.

“Currently, most exchanges focus on building a better trading tool, while the majority of crypto investors’ needs go beyond trading,” he said.

“KuCoin S aims to help users to better learn and trade crypto through the social trading experience, where they can also meet other traders who share the same ambitions and visions.”

The CEO also noted that the company believes that the integration of  ‘social’ and ‘trading’ features will make crypto trading easier and more understandable for newcomers.

“We intend to provide a one-stop-shop solution where users can discuss the latest trends and topics, get to know others’ investment strategies and portfolios, and then set up a trading bot to implement their trading ideas automatically,” he added.

“In this case, the crypto industry will be truly expanded to the masses in a simplified manner, where everyone can amplify their success rate through the social features provided by the platform.”

Legal changes to affect all companies working with crypto

When talking about crypto regulation in general, Lyu told Coin Rivet that he definitely stands on the pro-side.

“In short, crypto needs regulation,” he said firmly.

“Every sector of the economy of developed countries around the world is now engaged in solving the problems of legal regulation of cryptocurrency activities.

“These countries have made significant progress in defining the status and regulation of cryptocurrencies over the past year, doing so mainly through two types of activities.”

Lyu explained the two activities were the creation of a framework that would allow keeping records of digital funds and taxing them, and the development of a new payment infrastructure to make cryptocurrencies accessible for every category of users, including the unbanked population.

He also said that, from a legal point of view, no adoption of crypto as the legal tender can happen without the proper regulation of the payment industry.

“As already observed in the e-invoicing market, which became widespread in the US B2B segment after the federal Office of Management and Budget officially backed the use of electronic invoices in 2015 and made companies use that approach,” he revealed.

“Of course, the regulatory changes will affect all companies working with cryptocurrencies. A healthier and more understandable electronic settlement system for cryptocurrencies will be created.

“I’m talking about a combination of several factors, such as combining usability with AML compliance, instant payments, and security.

“An infrastructure, where governments, SMEs, solution providers, businesses, and the general public can benefit from by making or receiving payments with cryptocurrencies in their commercial activities, such as buying bread or coffee at their local shops will be actively developed.”

‘CBDCs are not cryptocurrencies’

Since the rise of central bank digital currencies, Lyu says he is aware of countries who are either developing or testing their national digital currencies in order to occupy a vacant niche in the impending financial revolution.

“It is reliably known that these will be digital currencies built on the blockchain, but it will be difficult to call them real cryptocurrencies,” he said.

“It is difficult to assess what impact the widespread transition to CBDC will have on the crypto market as a whole, however, in the next two years, little will change.”

With new investment possibilities in NFTs, Lyu suggested there were many blockchain projects that have learned to transfer financial value to the virtual world through the use of NFTs.

“The novelty of this technology is that it provides guarantees that when we buy a virtual asset such as a virtual house or a painting, we receive that very product we are paying for, and have the real ownership of it,” he explained.

“However, it also faces many challenges like the lack of liquidity. A recent survey shows that most NFT assets haven’t been sold more than once in 30 days.”

Lyu stressed that, as a crypto trading platform, liquidity is where KuCoin can contribute.

“The most interesting and relevant cases of NFT are now seen in metaverse projects — to facilitate users to understand what Metaverse is while obtaining easy access to Metaverse projects, KuCoin launched Metaverse Trading Board in September,” he detailed.

“So far, we already support around 10 metaverse projects including Axie Infinity (AXS), Enjin (ENJ), and Decentraland (MANA).”

On KuCoin’s gaming platform – KuCoin Win – the company’s newly-launched game Guardian Star will offer an interesting way to distribute NFT together with a recycling mechanism that allows users to sell the NFT back to the platform, improving the liquidity of NFT assets in another way.

Lyu professed that in the near future, blockchain will probably become an everyday infrastructure for numerous applications and millions will use them without even knowing it.

“I believe that hard cash will become obsolete by 2030 and digital currencies will take over,” he predicts.

“The blockchain will serve as the information storage space ensuring related operations and states will be taking an active role in the process of smoothing this adoption curve. As said in our vision, one day everyone will get involved with crypto.”