1
00:00:01,520 --> 00:00:05,000
Speaker 1: This is Bloomberg Crypto Daily Bloomberg I heard podcast and

2
00:00:05,040 --> 00:00:08,440
Speaker 1: I'm Philip Lawyer Kransler, senior crypto editor for Bloomberg News.

3
00:00:08,520 --> 00:00:25,760
Speaker 1: In Today for Stacy Marie Ishmael, It's Friday, December two. Well,

4
00:00:26,120 --> 00:00:29,920
Speaker 1: the apples are falling from the crypto tree one by one.

5
00:00:30,720 --> 00:00:33,080
Speaker 1: Contagion is still the name of the game, and this

6
00:00:33,159 --> 00:00:37,440
Speaker 1: week it was Block five filing for bankruptcy protection. Also,

7
00:00:37,560 --> 00:00:42,360
Speaker 1: crypto hedge funds are losing faith in centralized exchanges. Here

8
00:00:42,360 --> 00:00:44,800
Speaker 1: to help me break down the news is Bloomberg Senior

9
00:00:44,840 --> 00:00:48,240
Speaker 1: crypto editor Anna Arera. The question is if something happens

10
00:00:48,240 --> 00:00:50,800
Speaker 1: to Binance, and I'm not saying that we have indications

11
00:00:50,840 --> 00:00:53,920
Speaker 1: that it will, but who rescues Binance then? And you know,

12
00:00:54,160 --> 00:00:56,560
Speaker 1: you perhaps need money from outside the industry as well,

13
00:00:56,640 --> 00:01:00,600
Speaker 1: not just inside. And crypto reporter tens ill act are

14
00:01:01,080 --> 00:01:04,640
Speaker 1: the current regulation of crypto is partly shaped by misconceptions,

15
00:01:04,640 --> 00:01:07,839
Speaker 1: the belief that space must be given to innovation all costs.

16
00:01:19,040 --> 00:01:24,399
Speaker 1: Crypto contagion is showing very few signs of slowing down. Monday,

17
00:01:24,560 --> 00:01:28,360
Speaker 1: it was Block vice turn to file for bankruptcy, filing

18
00:01:28,360 --> 00:01:31,560
Speaker 1: for Chapter eleven bankruptcy protection in New Jersey, and are

19
00:01:31,640 --> 00:01:35,119
Speaker 1: you help cover that story a little bit? Um, can

20
00:01:35,160 --> 00:01:37,040
Speaker 1: you tell us a little bit about what happened and

21
00:01:37,080 --> 00:01:41,679
Speaker 1: how significant this is? Yeah, I mean it's it's a

22
00:01:41,720 --> 00:01:44,400
Speaker 1: big deal. It was not totally unexpected because they were

23
00:01:44,400 --> 00:01:47,840
Speaker 1: having trouble earlier in the crypto winter being a lender.

24
00:01:47,880 --> 00:01:52,480
Speaker 1: Obviously they suffered from the um falling prices and they

25
00:01:52,480 --> 00:01:55,400
Speaker 1: were rescued by FTX, and so obviously now we know

26
00:01:55,520 --> 00:01:59,680
Speaker 1: FDx itself needed rescuing, so clearly, um they had to

27
00:01:59,760 --> 00:02:04,120
Speaker 1: sort of file for bankruptcy too because the rescuer went down. Um,

28
00:02:04,120 --> 00:02:07,200
Speaker 1: it wasn't necessarily a massive shock to the sector. We

29
00:02:07,280 --> 00:02:10,320
Speaker 1: don't know the extent of contagion because, as with fd X,

30
00:02:10,360 --> 00:02:13,080
Speaker 1: the names of the creditors have been redacted, so we

31
00:02:13,120 --> 00:02:15,800
Speaker 1: don't know yet. But people were sort of expecting it

32
00:02:16,040 --> 00:02:19,000
Speaker 1: more than perhaps obviously for sure, more than they were

33
00:02:19,040 --> 00:02:22,760
Speaker 1: expecting the FTX collapse. Um. It does obviously leave the

34
00:02:23,200 --> 00:02:26,440
Speaker 1: door open to more contagient because who knows who their

35
00:02:26,440 --> 00:02:30,359
Speaker 1: counterparties are, and if perhaps they're also counterparties to ft X.

36
00:02:30,680 --> 00:02:33,480
Speaker 1: So I think people are sort of expecting perhaps more

37
00:02:33,520 --> 00:02:37,320
Speaker 1: shoes to drop. Um. But we'll have to follow what's

38
00:02:37,360 --> 00:02:41,519
Speaker 1: going on there. Yeah, and to your point about UM,

39
00:02:41,639 --> 00:02:45,240
Speaker 1: you know, having names redacted for major creditor that creditors

40
00:02:45,240 --> 00:02:48,239
Speaker 1: that are also appliance. I think we had at least

41
00:02:48,240 --> 00:02:51,960
Speaker 1: six or seven names with north of ten million dollars

42
00:02:52,000 --> 00:02:55,600
Speaker 1: or claims on them, So it's fair to even without

43
00:02:55,680 --> 00:02:59,720
Speaker 1: knowing who the names are, it's fair to assume presumably

44
00:02:59,800 --> 00:03:05,160
Speaker 1: that several outfits are sitting on rather large losses out

45
00:03:05,160 --> 00:03:08,880
Speaker 1: there stemming from this potentially. Yes, yeah, I mean we

46
00:03:08,919 --> 00:03:13,560
Speaker 1: saw the list of creditors without names had like big

47
00:03:14,400 --> 00:03:17,920
Speaker 1: big sums next to it, so it will be someone

48
00:03:18,800 --> 00:03:22,799
Speaker 1: maybe not necessarily a known crypto only firm UM that

49
00:03:22,919 --> 00:03:26,400
Speaker 1: has a huge loss because of Block five. Actually, curiously,

50
00:03:26,440 --> 00:03:28,880
Speaker 1: one of the entities that was mentioned and wasn't redacted

51
00:03:28,880 --> 00:03:32,519
Speaker 1: was the sec UM and Block fights at thirty million dollars,

52
00:03:32,520 --> 00:03:35,480
Speaker 1: which is part of a settlement UM that they were

53
00:03:35,520 --> 00:03:39,600
Speaker 1: paying UM because of an issue they had earlier in

54
00:03:39,600 --> 00:03:42,640
Speaker 1: the year, which is somewhat funny, but they're not really

55
00:03:42,680 --> 00:03:46,440
Speaker 1: that funny UM. But yeah, it's curious. I guess it's

56
00:03:46,480 --> 00:03:49,720
Speaker 1: like part of the crypto world that someone going bankrupt

57
00:03:49,840 --> 00:03:54,280
Speaker 1: owns owes the regulator millions of dollars basically, sec get

58
00:03:54,320 --> 00:04:01,600
Speaker 1: in line. You alluded to the fact this wasn't entirely

59
00:04:01,960 --> 00:04:06,840
Speaker 1: a bombshell surprise, and we've actually seen crypto markets fairly

60
00:04:06,880 --> 00:04:10,640
Speaker 1: stable throughout the week. We got bitcoin trading I believe,

61
00:04:10,720 --> 00:04:14,800
Speaker 1: just below seventeen thousand right now. Um, but there are

62
00:04:14,800 --> 00:04:18,480
Speaker 1: a wild range of forecasts and predictions out there right now.

63
00:04:19,080 --> 00:04:20,960
Speaker 1: Pass What can you tell me about that? What? What?

64
00:04:20,960 --> 00:04:23,800
Speaker 1: What have we seen in the last week? Um? Yeah, sure,

65
00:04:23,920 --> 00:04:26,919
Speaker 1: So you know, it's pretty surprising that it's the bitcoins

66
00:04:26,920 --> 00:04:30,040
Speaker 1: reached seventeen thousands, it's the highest level in two weeks,

67
00:04:30,120 --> 00:04:34,239
Speaker 1: and other also has climbed up four as well. Um,

68
00:04:34,320 --> 00:04:36,520
Speaker 1: the predictions out in the market right now. So we're

69
00:04:36,560 --> 00:04:40,440
Speaker 1: hearing Mark Mobius, who's the co founder of morbius Um

70
00:04:40,600 --> 00:04:43,839
Speaker 1: cups of Partners. He sees the next target for bitcoin

71
00:04:44,040 --> 00:04:48,560
Speaker 1: being ten thousand dollars um. So, although he did say

72
00:04:48,560 --> 00:04:50,800
Speaker 1: he won't be investing his own cash of client money

73
00:04:50,839 --> 00:04:53,880
Speaker 1: and digital assets as it's too dangerous, and he also

74
00:04:53,920 --> 00:04:56,120
Speaker 1: went on to say crypto is he to stay as

75
00:04:56,120 --> 00:04:58,800
Speaker 1: there are several investors who still have faith in it.

76
00:04:59,480 --> 00:05:03,520
Speaker 1: So messages from Mobius um. There was also a Wall

77
00:05:03,560 --> 00:05:08,200
Speaker 1: Street Journal column up by Andique Kessler, who says crypto's

78
00:05:08,240 --> 00:05:12,159
Speaker 1: final price could be zero, which states that no st

79
00:05:12,240 --> 00:05:16,600
Speaker 1: lender would extend credit against assets lacking any underlying collateral.

80
00:05:17,000 --> 00:05:19,400
Speaker 1: He also went on to compare the technology and debt

81
00:05:19,440 --> 00:05:22,440
Speaker 1: to red bull and milk, saying that they don't mix,

82
00:05:23,200 --> 00:05:27,120
Speaker 1: so you're seeing mixed messages. And then ECB also detailed

83
00:05:27,200 --> 00:05:30,599
Speaker 1: it stands on bitcoin um market in general through a

84
00:05:30,600 --> 00:05:34,719
Speaker 1: blog post, saying, Um, the current regulation of crypto is

85
00:05:34,800 --> 00:05:37,880
Speaker 1: partly shaped by misconceptions, the belief that space must be

86
00:05:37,920 --> 00:05:40,560
Speaker 1: given to innovation at our costs. So, I mean, the

87
00:05:40,880 --> 00:05:44,120
Speaker 1: post in general was quite negative about crypto. So, I mean,

88
00:05:44,520 --> 00:05:46,280
Speaker 1: there's not a lot of faith in the market right now.

89
00:05:46,320 --> 00:05:53,520
Speaker 1: But who knows? What are the bulls countering with? Anna?

90
00:05:53,760 --> 00:05:57,279
Speaker 1: One thing that we see quite a lot is, you know,

91
00:05:58,200 --> 00:06:01,000
Speaker 1: people are still building the block change operating, the de

92
00:06:01,120 --> 00:06:05,560
Speaker 1: FI protocols are still running. What are we hearing from

93
00:06:05,560 --> 00:06:10,240
Speaker 1: the bulls right now? Um? Sort of the crypto proponents

94
00:06:10,320 --> 00:06:13,599
Speaker 1: and you can separate the Bitcoin maxis from the rest

95
00:06:13,880 --> 00:06:16,760
Speaker 1: or in general, sort of people that believe in digital

96
00:06:16,800 --> 00:06:20,359
Speaker 1: assets say and point to the fact that actually f

97
00:06:20,520 --> 00:06:24,640
Speaker 1: t X isn't bitcoin, it's a centralized entity, and it's

98
00:06:24,680 --> 00:06:27,680
Speaker 1: sort of the opposite of what you would want UM

99
00:06:27,839 --> 00:06:31,520
Speaker 1: crypto for UM, and it just again reinforces the idea

100
00:06:31,600 --> 00:06:36,599
Speaker 1: that you need decentralized money because things like FTX happen

101
00:06:37,400 --> 00:06:40,560
Speaker 1: UM and so that you know there's still value in

102
00:06:40,600 --> 00:06:43,600
Speaker 1: digital assets and in bitcoins specifically, because it's not it's

103
00:06:43,600 --> 00:06:46,839
Speaker 1: not what collapsed and the networks still running and and

104
00:06:46,920 --> 00:06:49,440
Speaker 1: you know it wasn't a crash and it wasn't like

105
00:06:50,160 --> 00:06:53,120
Speaker 1: bitcoin filing for bankruptcy if you will, is fd X.

106
00:06:53,520 --> 00:06:56,480
Speaker 1: Of course, like one argument you could have to that

107
00:06:56,560 --> 00:06:59,839
Speaker 1: and is that you know, normal people can't really disting

108
00:07:00,000 --> 00:07:04,039
Speaker 1: wish between perhaps f t X and UM bitcoin or

109
00:07:04,200 --> 00:07:07,640
Speaker 1: the protocol they might have bought bitcoing through ft X,

110
00:07:07,720 --> 00:07:10,440
Speaker 1: and so maybe not for everyone. The distinction isn't very

111
00:07:10,440 --> 00:07:13,239
Speaker 1: clear because many of these firms that are centralized entities

112
00:07:13,280 --> 00:07:17,120
Speaker 1: became the representatives for for the asset class. If you

113
00:07:17,160 --> 00:07:19,280
Speaker 1: think about it, especially how much money they spent on

114
00:07:19,320 --> 00:07:21,960
Speaker 1: advertising over the past year. You know, I was watching

115
00:07:22,000 --> 00:07:24,320
Speaker 1: the World Cup last night, you still see crypto dot

116
00:07:24,360 --> 00:07:28,520
Speaker 1: Com advertised UM near the players. So it will be

117
00:07:28,520 --> 00:07:30,960
Speaker 1: clear for people in crypto, but it might be too subtle.

118
00:07:31,040 --> 00:07:34,600
Speaker 1: Maybe for for for some you know, tourist investors as

119
00:07:34,600 --> 00:07:38,640
Speaker 1: they like to like to call them. But we'll see. Like, certainly,

120
00:07:38,800 --> 00:07:42,600
Speaker 1: you know, it is quite um surprising that bitcoin has

121
00:07:42,640 --> 00:07:45,560
Speaker 1: held this much. You know, maybe you would have asked someone,

122
00:07:45,600 --> 00:07:48,640
Speaker 1: even a crypto believer, a few weeks ago, what would

123
00:07:48,640 --> 00:07:51,440
Speaker 1: happen to bitcoin? Surprised if ft X collapse in the

124
00:07:51,480 --> 00:07:54,840
Speaker 1: space of a week, and many of them, even bitcoin believers,

125
00:07:54,880 --> 00:07:57,440
Speaker 1: would have thought that it would have fallen beyond what

126
00:07:57,480 --> 00:08:00,240
Speaker 1: we saw it go down to. Yeah, I'm surprised it's

127
00:08:00,280 --> 00:08:04,880
Speaker 1: not lower, it didn't crush further down to like anyway,

128
00:08:04,920 --> 00:08:07,240
Speaker 1: that's just my opinion. There is a little bit of

129
00:08:08,280 --> 00:08:13,320
Speaker 1: unusual resilience here. Maybe um, maybe the hoddlers are finally

130
00:08:14,240 --> 00:08:16,920
Speaker 1: standing their ground. I do want to talk about another

131
00:08:16,960 --> 00:08:19,400
Speaker 1: type of trader that we just covered in a really

132
00:08:19,480 --> 00:08:22,760
Speaker 1: nice story that Anna you worked on the hedge fund

133
00:08:22,800 --> 00:08:25,600
Speaker 1: crowd or should I say the crypto hedge fund crowd

134
00:08:26,480 --> 00:08:31,720
Speaker 1: that are following the ft X debacle kind of losing

135
00:08:31,800 --> 00:08:36,080
Speaker 1: fate in the notion of the centralized crypto exchanged as

136
00:08:36,120 --> 00:08:38,760
Speaker 1: it stands today, and I can you tell us a

137
00:08:38,760 --> 00:08:42,080
Speaker 1: little bit more about that. Yeah, So obviously one of

138
00:08:42,120 --> 00:08:45,640
Speaker 1: the biggest groups that were hurt during FTX we were

139
00:08:45,640 --> 00:08:49,280
Speaker 1: pro traders and hedge funds and market makers. Because FTX

140
00:08:49,360 --> 00:08:51,840
Speaker 1: was built by a trader and by traders. One of

141
00:08:51,840 --> 00:08:55,439
Speaker 1: the original slogan was built by traders for traders, I believe,

142
00:08:55,800 --> 00:08:58,520
Speaker 1: So it was hugely popular with professional investors. It was

143
00:08:58,520 --> 00:09:01,120
Speaker 1: seeing sort of as the gold standard or like it was,

144
00:09:01,679 --> 00:09:05,280
Speaker 1: you know, really great for for professional trading. It had

145
00:09:05,880 --> 00:09:08,079
Speaker 1: got lots of leverage and had all these derivatives. It's

146
00:09:08,160 --> 00:09:11,400
Speaker 1: very attractive. So clearly when it collapsed, it caught many people,

147
00:09:11,520 --> 00:09:15,880
Speaker 1: even like pro um o G you know crypto funds,

148
00:09:16,120 --> 00:09:20,080
Speaker 1: UM caught them by surprise. And so if some of

149
00:09:20,120 --> 00:09:23,200
Speaker 1: them have had big losses, I mean obviously they ranged.

150
00:09:23,360 --> 00:09:25,840
Speaker 1: One fund we heard had to close. There might be

151
00:09:25,880 --> 00:09:28,080
Speaker 1: more we haven't heard of, but many had a little

152
00:09:28,120 --> 00:09:30,079
Speaker 1: bit of money on there for sure, because you needed

153
00:09:30,080 --> 00:09:32,840
Speaker 1: it to trade UM. And another thing of crypto platforms

154
00:09:32,920 --> 00:09:34,720
Speaker 1: is that it's it's not like Wall Street where you

155
00:09:34,760 --> 00:09:38,479
Speaker 1: have a trading platform, then you have a custodian clearinghouse

156
00:09:38,720 --> 00:09:41,440
Speaker 1: and UM a prime broker. A lot of that happens

157
00:09:41,480 --> 00:09:43,880
Speaker 1: on exchange, and so you also need to post your

158
00:09:43,920 --> 00:09:46,560
Speaker 1: collateral and exchange if you want to margin trade there,

159
00:09:46,960 --> 00:09:49,200
Speaker 1: and clearly, if then the exchange goes down, you're not

160
00:09:49,240 --> 00:09:51,880
Speaker 1: only losing your trading capital, you're losing what you're what

161
00:09:51,920 --> 00:09:54,280
Speaker 1: you're moving on exchange, but you're losing your collateral too,

162
00:09:54,600 --> 00:09:56,680
Speaker 1: and that's a big leap of faith now right to

163
00:09:56,720 --> 00:09:59,520
Speaker 1: go on another exchange. So we're hearing or you know

164
00:09:59,520 --> 00:10:02,080
Speaker 1: our report, I was hearing about sort of some some

165
00:10:02,160 --> 00:10:03,640
Speaker 1: funds that are a bit wary now and they don't

166
00:10:03,640 --> 00:10:05,920
Speaker 1: want to post their collateral anymore. So they're trying to

167
00:10:06,000 --> 00:10:09,120
Speaker 1: push for separation of powers, which would then make the

168
00:10:09,160 --> 00:10:11,320
Speaker 1: market look a bit more like Wall Street, which which

169
00:10:11,360 --> 00:10:14,200
Speaker 1: is of course ironic because the whole point was to

170
00:10:14,360 --> 00:10:16,640
Speaker 1: make it not look like Wall Street. And this is

171
00:10:16,679 --> 00:10:19,839
Speaker 1: the theme that's actually been cropping up quite repeatedly in

172
00:10:19,880 --> 00:10:22,200
Speaker 1: the last couple of weeks. They're post FTX. Is this

173
00:10:22,280 --> 00:10:26,280
Speaker 1: idea of the crypto exchange, or that, i should say,

174
00:10:26,280 --> 00:10:28,680
Speaker 1: the centralized crypto exchange. It's kind of a sort of

175
00:10:28,679 --> 00:10:33,880
Speaker 1: a weird animal which does multiple Wall Street functions in

176
00:10:33,880 --> 00:10:37,760
Speaker 1: in in one organization wraps them all together. It's sort

177
00:10:37,800 --> 00:10:40,199
Speaker 1: of as you're saying, it's it's there's a little bit

178
00:10:40,200 --> 00:10:43,480
Speaker 1: of an irony in there that the industry that was

179
00:10:43,920 --> 00:10:47,080
Speaker 1: supposed to be the inverse of Wall Street might actually

180
00:10:47,480 --> 00:10:50,160
Speaker 1: become more like Wall Street as a result of this.

181
00:10:53,200 --> 00:10:55,560
Speaker 1: What are your thoughts around that? Yeah, And I guess

182
00:10:55,559 --> 00:10:59,800
Speaker 1: it's interesting because perhaps it just shows how it is

183
00:10:59,880 --> 00:11:02,440
Speaker 1: just following the evolution and some of the mistakes that

184
00:11:02,520 --> 00:11:05,280
Speaker 1: happened on Wall Street because obviously, like some of the

185
00:11:05,320 --> 00:11:08,000
Speaker 1: separations of powers on Wall Street and market structure there

186
00:11:08,000 --> 00:11:10,600
Speaker 1: were in forced after the financial crisis of two thousand

187
00:11:10,600 --> 00:11:13,679
Speaker 1: and eight where people got hurt and where you know,

188
00:11:13,960 --> 00:11:16,640
Speaker 1: the rules came and made off as well, like clear

189
00:11:16,720 --> 00:11:21,160
Speaker 1: segregation of client assets UM, moving more stuff on you know,

190
00:11:22,240 --> 00:11:27,160
Speaker 1: murky stuff on transparent platforms UM, and making sure that

191
00:11:27,240 --> 00:11:30,280
Speaker 1: everything was separate because that reduces conflicts of interest. So

192
00:11:30,320 --> 00:11:32,680
Speaker 1: in a way, rather than I guess it's repeating, it's

193
00:11:32,840 --> 00:11:35,880
Speaker 1: replicated Wall Street and also the mistakes of Wall Street,

194
00:11:35,880 --> 00:11:39,400
Speaker 1: which is really which is really interesting. We'll be right

195
00:11:39,440 --> 00:11:42,080
Speaker 1: back with more of the week's top crypto stories with

196
00:11:42,200 --> 00:11:54,760
Speaker 1: Anna Arera and Tanzille Actor. It wouldn't be a full

197
00:11:54,800 --> 00:11:59,400
Speaker 1: crypt episode without talking about UM, our favorite crypto exchange

198
00:11:59,440 --> 00:12:01,800
Speaker 1: finance UM. They were in the New Striking a deal

199
00:12:01,840 --> 00:12:06,319
Speaker 1: in Japan, tas what happened there. Um, Yes, so binances

200
00:12:06,400 --> 00:12:10,320
Speaker 1: re entering Japan, which is really interesting. UM. In the

201
00:12:10,360 --> 00:12:13,760
Speaker 1: early days, Japan was a hope for crypto um as

202
00:12:13,800 --> 00:12:16,640
Speaker 1: it was home for mark Gox. So I'm not sure

203
00:12:16,640 --> 00:12:18,360
Speaker 1: if you know. I'm sure people have heard the Mount

204
00:12:18,360 --> 00:12:21,720
Speaker 1: Cox and how there was a massive hack which involved

205
00:12:22,160 --> 00:12:24,680
Speaker 1: four hundred and sixty million at the time going missing.

206
00:12:25,000 --> 00:12:28,520
Speaker 1: So Japan itself has been very like careful when it

207
00:12:28,559 --> 00:12:34,600
Speaker 1: comes to UM regulating crypto. So obviously finance re entering

208
00:12:34,720 --> 00:12:37,320
Speaker 1: Japan I think is a big deal because Japan is

209
00:12:37,320 --> 00:12:41,600
Speaker 1: super careful when it comes to regulations around crypto UM.

210
00:12:41,640 --> 00:12:44,320
Speaker 1: They've also been one of the markets that even that

211
00:12:44,520 --> 00:12:46,840
Speaker 1: has been one of the older adopters I think in

212
00:12:46,920 --> 00:12:49,600
Speaker 1: Asia of krypto, and obviously, as Stars was saying they

213
00:12:49,600 --> 00:12:51,959
Speaker 1: were burned by Mount Cox or early on, they tightened

214
00:12:51,960 --> 00:12:54,480
Speaker 1: regulation a bit more. So it's interesting now and that

215
00:12:54,559 --> 00:12:57,079
Speaker 1: led some players to leave, and I guess now with

216
00:12:57,120 --> 00:13:00,800
Speaker 1: the regulation that's in place, it's it's leading players to

217
00:13:00,880 --> 00:13:02,559
Speaker 1: come back, which is I guess some of the point

218
00:13:02,640 --> 00:13:05,960
Speaker 1: that the point that some crypto firms make, they say, well,

219
00:13:06,520 --> 00:13:09,360
Speaker 1: the lack of regulation makes This makes it unclear, and

220
00:13:09,400 --> 00:13:12,400
Speaker 1: so it's pushing us to go offshore somewhere else. If

221
00:13:12,400 --> 00:13:14,680
Speaker 1: we had clear regulation, at least we know what rules

222
00:13:14,679 --> 00:13:18,000
Speaker 1: to play by UM, which is a point, But then

223
00:13:18,040 --> 00:13:20,640
Speaker 1: I guess the counterpoint is, you know, you could just

224
00:13:20,679 --> 00:13:23,559
Speaker 1: follow the regulation that exists on it, I would say

225
00:13:23,679 --> 00:13:26,280
Speaker 1: other assets. That's quite a bullish move on Japan's front

226
00:13:26,320 --> 00:13:28,480
Speaker 1: when it comes to crypto, like letting Binance one of

227
00:13:28,520 --> 00:13:31,560
Speaker 1: the biggest exchanges to list out there. I don't know,

228
00:13:31,600 --> 00:13:33,880
Speaker 1: that's my point of view. They're not. I don't know

229
00:13:33,880 --> 00:13:38,360
Speaker 1: if the term is listing you think they are. They

230
00:13:38,440 --> 00:13:42,640
Speaker 1: are gaining a foothold in Japan, I think we can say.

231
00:13:44,120 --> 00:13:47,600
Speaker 1: And you know, on the topic of viinance, they are

232
00:13:47,640 --> 00:13:51,760
Speaker 1: obviously the eight hundred pound guerrilla in the industry right now,

233
00:13:51,840 --> 00:13:55,520
Speaker 1: especially after FT excess demise, and they have been kind

234
00:13:55,520 --> 00:13:58,920
Speaker 1: of on the trying to get on the front foot

235
00:13:58,920 --> 00:14:01,720
Speaker 1: a little bit in the last two weeks UM and

236
00:14:01,800 --> 00:14:05,840
Speaker 1: one of their initiatives and has been this industry recovery

237
00:14:05,840 --> 00:14:09,079
Speaker 1: initiative what do you want to call it? A rescue

238
00:14:09,120 --> 00:14:13,480
Speaker 1: fund for promising but cash trapped crypto startups CC. You've

239
00:14:13,480 --> 00:14:16,280
Speaker 1: talked about launching a Crypto Recovery Fund. Where are you

240
00:14:16,320 --> 00:14:21,320
Speaker 1: on that? You've talked about interest being quite substantial. Who's interested? Um,

241
00:14:21,360 --> 00:14:23,800
Speaker 1: there's being back and forth on how to structure that.

242
00:14:24,240 --> 00:14:26,280
Speaker 1: Do we make it at a loose fund or do

243
00:14:26,320 --> 00:14:28,240
Speaker 1: we make it that actual fund fund. I think we're

244
00:14:28,280 --> 00:14:31,720
Speaker 1: kind of going with a loose approach where different industry

245
00:14:31,720 --> 00:14:35,760
Speaker 1: players will just contribute as they wish. So what have

246
00:14:35,880 --> 00:14:40,080
Speaker 1: we seen there and what might their motivations be behind

247
00:14:40,880 --> 00:14:44,000
Speaker 1: these efforts? I guess maybe part of it is also

248
00:14:44,080 --> 00:14:48,480
Speaker 1: for morale to show that there's still money and um,

249
00:14:48,520 --> 00:14:51,280
Speaker 1: you know interest in crypt obviously, like a crypto firm

250
00:14:51,320 --> 00:14:53,720
Speaker 1: would have interesting crypto, but just to show that there's

251
00:14:53,720 --> 00:14:57,360
Speaker 1: still some life here. UM. It was interesting that they

252
00:14:57,480 --> 00:15:00,640
Speaker 1: said they have around a billion, the action fund will

253
00:15:00,640 --> 00:15:02,520
Speaker 1: be around a billion, and they had other firms like

254
00:15:02,600 --> 00:15:05,560
Speaker 1: notably some market makers committing money too, but like the

255
00:15:05,600 --> 00:15:10,720
Speaker 1: Lion's share was from finance um, which you know is curious,

256
00:15:10,760 --> 00:15:13,040
Speaker 1: but as as well, you know, you're sort of seeing

257
00:15:13,080 --> 00:15:16,520
Speaker 1: parallels with the early SPF days, the SPF of summer

258
00:15:16,560 --> 00:15:19,200
Speaker 1: when he was coming in and having to rescue. So

259
00:15:19,560 --> 00:15:22,000
Speaker 1: you know, the question is if something happens to Binance

260
00:15:22,040 --> 00:15:24,640
Speaker 1: and I'm not saying that we have indications that it will,

261
00:15:24,680 --> 00:15:27,800
Speaker 1: but who rescues Binance then? And you know, you perhaps

262
00:15:27,880 --> 00:15:30,880
Speaker 1: need money from outside the industry as well, not just inside.

263
00:15:31,200 --> 00:15:34,040
Speaker 1: But it's definitely an interesting thing to to watch and

264
00:15:34,080 --> 00:15:36,200
Speaker 1: see what they decided to to invest in. I think

265
00:15:36,560 --> 00:15:38,640
Speaker 1: we had Ces on TV last week and he was

266
00:15:39,280 --> 00:15:43,240
Speaker 1: discussing how they're looking at another Voyager bid. They're going

267
00:15:43,280 --> 00:15:46,840
Speaker 1: to look at FTX assets as well, see what's what's

268
00:15:46,920 --> 00:15:49,120
Speaker 1: viable there, and I think they said they were in

269
00:15:49,200 --> 00:15:53,880
Speaker 1: talks with Genesis too. So basically to conclude the session,

270
00:15:54,160 --> 00:15:58,520
Speaker 1: watch c Z and Binance and let us see what

271
00:15:58,520 --> 00:16:01,160
Speaker 1: happens in the next few weeks. Thank you Anna, and

272
00:16:01,200 --> 00:16:03,960
Speaker 1: thank you tan Sale. You can find more of Anna

273
00:16:04,040 --> 00:16:07,880
Speaker 1: Arera and Tansale actors reporting on the Bloomberg Terminal and

274
00:16:07,920 --> 00:16:10,960
Speaker 1: on Bloomberg dot com. For more, be sure to check

275
00:16:11,000 --> 00:16:20,920
Speaker 1: out our twice weekly newsletter, Bloomberg Crypto. This is Bloomberg Crypto,

276
00:16:21,160 --> 00:16:24,440
Speaker 1: a daily podcast from Bloomberg and I Heeart Radio. For

277
00:16:24,520 --> 00:16:27,360
Speaker 1: more shows from I Heeart Radio, visit the iHeart Radio app,

278
00:16:27,600 --> 00:16:31,720
Speaker 1: Apple Podcasts, or wherever you get your podcasts. Send us

279
00:16:31,760 --> 00:16:34,600
Speaker 1: your comments, questions, or suggestions for the show to Crypto

280
00:16:34,680 --> 00:16:41,080
Speaker 1: at Bloomberg dot Net. The supervising producer of Bloomberg Crypto

281
00:16:41,200 --> 00:16:45,200
Speaker 1: is Vicky Vergolina. Our senior producer is Janet Babin. Our

282
00:16:45,200 --> 00:16:49,160
Speaker 1: producers are Mohammed Farouk and Sharon Barrero. Our associate producers

283
00:16:49,160 --> 00:16:52,720
Speaker 1: are Ty Butler and Moses on Them. Desta wonder At

284
00:16:52,880 --> 00:16:57,960
Speaker 1: is our engineer. Original music by Leo Sidron. I'm Stacy

285
00:16:58,040 --> 00:16:59,840
Speaker 1: Marie Schml. We'll be back tomorrow