The impact of SEC prosecution on the development of encryption industry

After the SEC sued X'an, the latest news is that the assets of X'an's US exchange have been frozen, and the relevant regulators require X'an to return the assets of American users within a certain period of time.

After the news came out, all the users around me who had assets in X'an tried their best to withdraw their assets from X'an, in order to prevent the situation from further expanding, and even their own assets in X'an to encounter accidents.

If the current situation continues to develop, I am afraid it will be the beginning of the next large-scale run. Exchanges, like banks, are most afraid of users running on assets.

So next, **X'an will go through a severe test for a period of time. And this test is the touchstone to test whether X'an really maintains a certain bottom line in the process of commercial operation and operation. If it does not seriously misappropriate user assets, then there is a high probability that it will be able to "survive the robbery", but if it really seriously misappropriates user assets, then the subsequent chain reaction may be unimaginable. **

Regardless of whether X'an can withstand this test or not, this incident may have a greater impact on the market in the short term. **But in the long run, the impact is not that big. **CEX is just needed by many users, especially primary users, in the encryption ecosystem, so CEX will definitely exist for a long time. Even if one exchange exits the market, other exchanges will soon rush in to grab the share it leaves behind.

**In this incident, I think what our retail investors should pay more attention to is the safety of our own assets. **

In a previous article, I wrote that "black swans" are unlikely to appear in this year's circle. What I wanted to express at the time was that after the collapse of FTX, users with a little sense of anxiety should think that since the second largest exchange will have problems, who can guarantee that the larger exchanges will not have problems?

If you can have such awareness, you will take corresponding measures to protect your own assets more seriously—such as not storing large amounts of assets in exchanges. If this can be done, even if a more serious accident occurs, the user will be able to bear the risk. Now that we can bear the risks involved, there is no such thing as a "black swan".

In this high-risk ecosystem, nothing is more important than the safety of our own assets.

We hope that all the assets of our readers are kept safe in their own wallets.

** From a macro point of view, this large-scale prosecution by the SEC will definitely be highly concerned by all areas of the world that operate the encryption industry, and the development of the situation will definitely become a model for other places to learn from in the future ------ - especially what kind of regulation would actually boost the industry without stifling innovation. **

Therefore, from this perspective, the reference and reference significance of this lawsuit is very great, and it is also an important node for the entire industry to standardize and rule of law in the future.

**From the perspective of specific subdivision industries, no matter what this lawsuit will eventually develop, in the future, all parts of the world, especially those regions that are ready to allow the legal and compliant development of the encryption industry, will definitely supervise exchanges----trading The licensed operation of the law firm must be the general trend. **

**The licensed operation of the exchange will eventually evolve into KYC certification for all users. **And to be able to legally and compliantly carry out KYC certification and participate in this ecology, the best place in the world must be a place that allows the legal and compliant development of the encryption industry.

** Therefore, from this perspective, the importance of Hong Kong will become more and more obvious to users in mainland China in the future. For Hong Kong, the encryption industry may really become the starting point to push Hong Kong to a new height. **