China’s latest cryptocurrency ban resulted in some panic-selling digital assets, but according to others, it is a quite welcome change to the crypto landscape.
What Happened: According to a Monday Fortune report, oil trader turned crypto fund manager Arthur Cheong believes that China’s banning cryptocurrencies may end up helping the decentralized finance (DeFi) space.
Cheong — whose fund DeFiance Capital invested over $100,000 in crypto-powered game Axie Infinity (CRYPTO: AXS) at $0.08 before they skyrocketed 148,009% to the current price of $118.43 — said DeFi is subject to political, regulatory and infrastructural risks. According to him, “the market share of traditional financial services will be taken away by DeFi” in the next “five to 10 years.”
Considering that “centralized cryptocurrency companies are currently getting curtailed and restricted,” investors will look for alternatives in the DeFi ecosystem, accelerating its growth, Cheong said.
While “attempts to bring DeFi into the regulatory fold are inevitable,” he said the real challenge is “how that effort will be implemented.”
These comments on Cheong’s part seemingly suggest that removing China from the equation is a dynamic that improves how he expects DeFi will be regulated in the future.