- Kevin O’Leary is now putting his full support behind a crypto firm he has invested in, WonderFi
- He pointed out the recent regulatory scrutiny of Binance and Coinbase is leading to increased oversight of the entire cryptocurrency sector
- Despite his controversies in FTX, he is still optimistic with digital assets as long as he invests in the right company to handle crypto
Despite the collapse of the cryptocurrency exchange FTX, a platform that paid controversial investor and entrepreneur Kevin O’Leary as its spokesperson, his belief in the asset class has not been diminished. In an interview with Business Insider, O’Leary commented that “confidence comes from asset performance,” With Bitcoin rising 70% in the first quarter of 2021, it’s no surprise that his top-performing holdings include tokens from Polygon and Matic as well.
In light of FTX’s implosion, O’Leary has moved all his assets to Canada and no longer keeps funds in unregulated exchanges. He is now putting his full support behind WonderFi — a crypto firm he has already invested in. After a merger with two other Canadian businesses, Coinsquare and CoinSmart, WonderFi has become Canada’s largest regulated digital asset trading platform. And according to O’Leary, this regulatory backing will help keep user assets secure and compliant.
Recent regulatory scrutiny of Binance and Coinbase only intensifies this trend toward increased oversight of the entire cryptocurrency sector. During conversations with senators in December 2022, O’Leary noted their high levels of frustration — they had instructed regulators to “go get them.” This led to numerous enforcement actions perpetrated against these companies.
But while existing players may struggle to comply with these regulations, investors are optimistic about digital asset investment. Growing interest from institutional investors and pioneering founders within the sector are pointing towards a bright future for cryptocurrencies despite its challenging environment.
O’Leary’s Bet on WonderFi and the Possible Dangers of Current Exchanges
In October 2022, Coinsquare became the first Canadian crypto trading platform to be registered as an investment dealer and join the Investment Industry Regulatory Organization of Canada.
Shark Tank host Kevin O’Leary has also been involved in the project. He commented on how previous cryptocurrency platforms were limited to those that could withstand considerable regulatory compliance costs. He believes that this transaction will create an example for regulators and investors worldwide of what a properly regulated industry looks like:
“WonderFi’s commitment to new regulated verticals and iGaming will make the Combined Company the only publicly traded company on the planet that provides access to all of these product offerings that users have been asking for.”
O’Leary said that recent regulatory action against Binance and Coinbase would shape the future of decentralized digital assets. According to him, he spoke with senators in December and perceived their concern over the lack of oversight in the industry. This resulted in enforcement action being taken against those operating without compliance costs or regulations.
O’Leary believes this will prove difficult for some early adopters of cryptocurrency as they are not used to operating under these rules. “They don’t know how to make money in a regulated environment,” he concluded.
