‘Crazy and scary’: Here’s what Nithin Kamath has to say about the crypto world 

Zerodha founder and CEO Nithin Kamath has hailed the Indian capital market infrastructure and regulations and said the entire system does not get enough credit for being among the best globally. In a LinkedIn post that has gone viral, Kamath talked about the crypto world and that brokers and exchanges can act as banks in most markets.

He added, “In India, all securities are held by the customer at the depository. All unused funds are sent back monthly/quarterly and one client’s funds can’t be used to fund another. In most markets, brokers can hold customer securities and funds indefinitely and use them any way they want.”

The Zerodha founder went ahead and commended the Securities and Exchange Board of India (SEBI) for their efforts aimed at protecting the interests of the retail investors by reducing risks and making markets safer. 

Kamath’s comments come after a deal between crypto exchanges FTX and Binance collapsed. The deal was touted as an emergency rescue in the world of cryptocurrencies as investors pulled their money back from risky assets. 

Binance said in a statement accessed by news agency Reuters, “As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations, we have decided that we will not pursue the potential acquisition of FTX.com.”

After this, FTX CEO Sam Bankman-Fried said in a message to employees, “I’m working, as quickly as I can, on the next steps here. I wish I could give you all more clarity than I can.” 

Meanwhile, cryptocurrency market-cap saw a decline of 7.82 per cent to $835.16 billion. Key tokens such as Bitcoin and Ethereum also fell to $16,612.50 and $1,181.61 respectively. Market cap of Bitcoin and Ethereum stands at $319.67 billion and $145.09 billion at the time of writing this story, according to coinmarketcap.com.

Also read: FTX CEO looking at all options as Binance deal collapses

Also read: No IIM or Harvard: How Nithin Kamath built Zerodha without a management degree