In what comes as a backdrop emerging within the cryptocurrency realm, VanEck advisor Gabor Gurbacs recently took to a post on X, voicing concerns over modern-day crypto regulations and their negative impact on innovation. In a recent post shared by Gurbacs on X, the VanEck advisor spotlighted the stifling effect of current cryptocurrency regulations on innovations throughout the sector.

I am personally unhappy with how regulators in developed markets managed the first decade of digital asset regulation. They manage to simultaneously enable scammers, hamper actual innovation and protect incumbents on the expense of those building better systems.

— Gabor Gurbacs (@gaborgurbacs) March 27, 2024

With KuCoin facing DoJ charges and hacks such as Munchables on the rise, Gurbacs’ post ushered in a sense of apt regulatory measures urgently required among market participants. The post shared today further underscored this need for seamless regulatory frameworks that aid in fostering innovations across the crypto landscape rather than hindering them.

Gurbacs Rebukes Contemporary Crypto Regulations’ Failure Amid KuCoin & Munchables Saga

According to the post shared on X, Gurbacs stated, “I am personally unhappy with how regulators in developed markets managed the first decade of digital asset regulation.” Concerning this, he drew attention to how modern-day regulations have managed to simultaneously aid scammers, hamper actual innovation, and protect incumbents at the expense of those building better systems.

Although the advisor also stated, “There are of course a few exceptions to this,” there is still much ground left to cover. Prioritizing political or personal agendas over national interests and economic growth is intolerable, specifically in today’s global financial landscape, Gurbacs additionally stressed.

Meanwhile, his statements promptly garnered substantial traction, mirroring the market’s concerns over rising legal tussles, scams, hacks and other adverse events within the crypto space.

KuCoin Faces DoJ’s Charges

KuCoin, a renowned cryptocurrency exchange, recently faced charges by prosecutors in Manhattan, accusing the exchange of violating the Bank Secrecy Act and operating an unlicensed money-transmitting business. Following this, the platform noted phenomenal outflows, topping the $1.1 billion mark today.

However, industry experts expect KuCoin not to end like FTX, a bankrupt firm, attributing it to a stockpile of on-chain reserves, particularly in Bitcoin (BTC) and Ethereum (ETH), KuCoin has.

Also Read: Sam Bankman-Fried Faces Impact Statements From FTX Users: Court Filing

Munchables Hack

In the interim, another event curated turbulence across the cryptocurrency sector, exposing blockchain-based gaming’s vulnerabilities to the crypto realm. The Munchables gaming platform recently witnessed a setback as it faced a security breach that resulted in the loss of $63 million worth of funds, further mirroring Gurbacs’ dismay over crypto regulations and their lack of functioning where it is needed the most.

Also Read: Hong Kong’s Inkeverse Plans $100M Investment To Increase Crypto Holdings

The post VanEck Advisor Voices Dismay Over Crypto Regulations Stifling Innovation appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am