'What is not well regulated, is not investment worthy...': Edelweiss's Radhika Gupta on perils of investing in crypto
Edelweiss Mutual Fund MD & CEO Radhika Gupta has once again reiterated her concerns regarding investments in cryptocurrency noting the risks associated with investing in a sector that isn't well-regulated while hoping that the examples of Binance and FTX will be a strong reminder for people. In a post on X, Radhika Gupta wrote, “For years, when asked about crypto, I have had a single answer - what is not well regulated is not investment worthy.
Unfortunately India had at peak 10 crore crypto investors (and less than 4 crore MF investors), thanks to clever advertising, outspoken influencers and celebrity endorsements. I hope the events around Binance and FTX are a strong reminder about the perils of investing in the financial Wild West." According to a Reuters report, Binance violated US anti-money laundering and sanctions laws by failing to report more than 100,000 suspicious transactions with organizations designated as terrorist groups by the US, including Hamas, al Qaeda, and the Islamic State of Iraq and Syria.
Founder-CEO of Binance, Changpeng Zhao, or CZ, as he is fondly known by crypto enthusiasts, has stepped down from his role after pleading guilty to breaking US anti-money laundering laws Prosecutors hailed the agreement, which would see Zhao personally pay $50 million, as one of the highest corporate penalties in US history. It is yet another setback for the crypto business, which has been plagued by probes, and follows the recent fraud conviction of FTX creator Sam Bankman-Fried.
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