El-Erian is the chief economic adviser of Allianz and ex-CEO of PIMCO
Regulation will help crypto steer away from headwinds currently facing Big Tech firms Facebook, Google, and Amazon among others.
Binance CEO Changpeng Zhao expounded on this same topic in an interview
Mohamed El-Erian, one of the world’s most respected economists, has said that the crypto industry cannot afford to make mistakes seen across Big Tech in its early years.
El-Erian, a chief economic adviser at Allianz, says the entry of institutional investors and continued mainstream adoption means crypto should more forthcoming when it comes to discussions with regulators on matters related to the burgeoning market.
“When I speak to people in the crypto industry, I say you have a responsibility not to repeat the mistake of Big Tech,” the economist said.
According to El-Erian, Big Tech’s main mistake as the industry boomed was a lack of engagement with regulators. He notes that the sector failed by not having “preemptive regulatory discussions,” even as several firms in the industry become systematically important.
The ex-PIMCO CEO says engaging regulators as early as this would help crypto companies avoid the same regulatory challenges as those currently beleaguering tech giants Facebook, Google, and Amazon
It’s a sentiment most recently espoused by Binance CEO Changpeng Zhao during an interview with CNBC.
On Monday, Changpeng told CNBC’s “Squawk Box” that the exchange was pushing for proper crypto regulation, noting that this would be “good” for the broader cryptocurrency industry.
Changpeng’s comments came at the same time as the crypto exchange’s announcement of “10 Fundamental Rights for Crypto Users” Binance believes will guide regulators in their engagements with the sector about how best to oversight the growing crypto market.
While Binance’s push could be borne out of its recent brush with regulators right across the globe, many observers and experts have increasingly noted that crypto may indeed benefit from proper regulation.
El-Erian believes crypto will be better off if it takes seriously concerns such as illicit payments, fraud and platform stability.