Cryptographic trading is more and more similar to the US stock market in the late 1920s, said the head of the Swiss financial watchdog. Officials believe that regulators around the world should do more to ensure investor protection.
Swiss financial watchdog executive demands more regulation for the “abuse” crypto market
Euronews reported Wednesday that the government is still trying to find the best approach to monitoring the $ 900 billion crypto asset market, which is only partially regulated in many jurisdictions. Authorities have issued many warnings about the risks associated with investing in cryptocurrencies, including “manipulating the opaque crypto market.”
More is possible in this regard, according to a statement by Urban Angelhrn, CEO of the Swiss Financial Markets Supervisory Authority.Finma). During the meeting in Zurich, Switzerland, Angelhrn further commented:
Much of the trading of digital assets looks like the 1928 US stock market. There are, in fact, frequent abuses, pumps and dumps of all kinds.
Finma’s top executives also urged colleagues to “think about the potential of technology to easily process large amounts of data and protect consumers from transactions in abusive markets.” His call comes in the turmoil of the market over the past few weeks and the problems of some crypto projects.
The overall capital of the crypto market fell from about $ 3 trillion in November 2021 to $ 900 billion. Bitcoin (BTC), The cryptocurrency with the largest market capitalization fell below $ 20,000 per coin earlier this month for the first time since December 2020.
Although the loss of value reached about 60% this year, high inflation and rising interest rates have also caused capital flight from other higher-risk assets and equities, the report notes.Against this background, and considering the troubles in companies like CelsiusMay increase regulatory pressure on the industry.
Do you expect regulatory agencies to adopt stricter rules for the crypto sector in the near future? Share your thoughts on this subject in the comments section below.
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