The FTX disaster has set back crypto by ‘years’ — here are 3 ways it could reshape the industry

The collapse of FTX has shattered investor confidence in Cryptocurrencies. Market players are trying to understand how it will affect the industry in the future.

The former boss of FTX was arrested in the Bahamas last week. He has been indicted by the US government.

Buyers and sellers of digital currency were connected through FTX. The company did more than just make risky trades through its sister firm.

Louise Abbott is a partner at law firm Keystone Law and she said it was hugely disappointing for investors.

The FTX drama could have a huge impact on the future of the industry. The industry could change.

The disaster will likely cause regulators to act.

Because of the unregulated nature of the industry, investors don't have the same protections as if they were using a licensed bank or broker.

It might be about to change. The market is being cleaned up by governments in the U.S., European Union and the U.K.

If there’s no regulation, the investors are left without that protection that they need.

The EU's Markets inCrypto-Assets is the most complete regulatory framework to date. Exchanges will be liable if they lose investors' assets in the future.

MICA won't start until next year. It is important that regulators act quickly.

There are steps being taken to regulate it, people need to know that. She believes that if we can offer some regulation, we will build confidence. The investors are left without protection if there is no regulation.

According to the founder and CEO of Wintermute, the saga has delayed the adoption ofcryptocurrencies by a couple of years.

He said that Celsius, Three Arrows, and FTX all failed this year because they weren't fully centralized.

Kevin de Patoul, CEO of Wintermute, says that the biggest lesson from FTX is that you cannot have complete centralization.

He said that there will be both centralization and decentralization in the future. There needs to be a balance of power when you have that centralization.

I don’t think all the dominoes have fallen out from the contagion. The impact that this will have is that a lot of projects actually are not going to have the funds...

Peter Smith, CEO of Blockchain.com, said in a CNBC moderated talk that FTX and Alameda were very active investors in the space.

Near Foundation was one of the firms that received investment from FTX. Marieke Flament, Near's CEO, said the firm had limited exposure to FTX.

Flament doesn't think all the dominoes have fallen out. The impact that this will have is that a lot of projects will not have the funds to continue and develop.

The failure of FTX has raised fears over the health of other major exchanges. According to data from CryptoQuant, over one million bitcoins have flowed out of exchanges in the last two years.

The world's largest exchange is facing questions about the amount of reserves it has. Billions of dollars left the company in the last week.

There is no reason to suspect that the company is in danger of going bankrupt. Falling trading volumes and account balances are putting a negative market backdrop on exchanges.

Their survival will depend on how seriously they take risk management, governance and regulation, according to experts.

Abbot said that there will be exchanges that are doing things the right way.

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The long-lived digital currency is better positioned than its smaller rivals.

Gaevoy from Wintermute told CNBC that he thinks that Defi and bitcoin will have a life of their own.

The digital asset industry is likely to survive despite the depressed state of the market.

Proponents of a hypothetical internet called Web3 expect the winter of 2022 to pave the way for more innovative uses of the technology.

Digital innovation arms or metaverse innovation arms are what we're seeing a lot of. The technology is here and they know it. It isn't going to leave.

Users' relationships with properties in games and events could be changed by NFTs. Digital assets can be used to track ownership of virtual items.

Ian Rogers, chief experience officer at Ledger, said that digital assets will be an increasing part of his life. Membership could be used to get access to a particular event.

There is a learning curve for many. Cordel Robbin- Coker, CEO of mobile games firm Carry1st, told CNBC at the Slush startup conference that it was difficult to create wallet and store keys.

The internet in the 90s was compared by Robbin- Coker. It was difficult to use. He said that the original web browsers were not very intuitive.

The early Adopters really engage at that point. Over time, companies improve their interface. They took steps out of it.