Pressure on Cryptocurrencies is Increasing by Regulators
2022.12.02 06:12
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Pressure on Cryptocurrencies is Increasing by Regulators
Budrigannews.com – The heads of the financial and industrial industry and legislative bodies have stated the need for regulatory intervention to protect crypto investors from the collapse of the FCS. This is the latest announcement of tighter supervision in a sector undergoing a crisis.
After several major market collapses, corporate policy failures for many years have emphasized the need for effective regulation of the cryptocurrency industry. They considered the risks that consumers face as a result.
However, cryptocurrencies, as well as businesses that are associated with them, are still not sufficiently regulated. In 2024, the EU crypto control rules are expected to come into force, but there are no general rules for the United States yet. This year there have been several major failures in cryptography, the most notable of them was the death of FTX Sam Bankman-Fride.
This led to the collapse of the cryptocurrency market, which brought billions of losses to about a million borrowers. Laura Cha, chairman of the Hong Kong Stock Exchange and Leasing, said: “The collapse of a large FTX-type company simply demonstrates the importance of transparency, the importance of proper regulatory enforcement and regulatory requirements for the entire financial process.”
In New York, Stock Exchange President LynnMartin said that institutional economy investors are unlikely to accept cryptocurrency, despite clearer rules. Martin said: “There were no regulatory frameworks, and institutional investors really won’t dive into the market significantly if they don’t understand what the regulatory framework is.” These fears are shared by some crypto investors.
According to Brian Fahuri of the cryptocurrency Foundation, “Regulators could publish much more recommendations on cryptocurrencies.” At the end of the year, the cryptocurrency industry had a record value of almost 3 trillion US dollars. However, the market turmoil associated with rising interest rates and a series of industry crises have reduced this price by more than $2 trillion.
The largest trader has lost a third of its price since the record low of $69 thousand. If we talk about the fact that the crypto industry receives broader support in the financial services sector, this did not help extremely volatile. “I don’t believe in this trend or disappear, but I can’t assess it,” MorganStanley NYSE.
Reuters CEO James Gorman said: “I don’t like to invite clients to things or invest them that give different results. After the demise of FTX regulators in the US, finance and crypto business leaders focused their attention on the need for more transparent rules and a set of practical rules.
Nasdaq President Adena Friedman demanded to maintain a balance in leadership among security and development – a typical deterrence among ordinary organizations specializing in cryptography. For several years, Nasdaq has been providing cryptocurrency exchanges with trading and monitoring technologies. In the first half of 2023, the launch of the company’s crypto storage division is expected, subject to the approval of regulatory agencies.
“This is an ideal means for consultants to familiarize themselves with the case and ensure that we will have safety, sufficiency and security in the process of promotion, but we also treat the development and experimental biological system,” Friedman said.
The disappearance of FTX, said the head of the Indian Ministry of Finance, Nirmal Sitharman, indicates the need for a more transparent crypto transfer, which, as a rule, occurs anonymously. Sitharaman said the FTX crisis “demonstrates the importance of clearly formulated regulation” so that states clearly define who carries out these operations and for what purposes. Who will win in the end? ” –
According to cryptocurrency entrepreneur Justin Sun, investors rarely know how to use funds in cryptocurrencies. “Many exchanges and credit providers and organizations in this sector do not have transparency. “
In fact, customers do not know where the funds are distributed,” said Sun, the founder of the Tron cryptocurrency.
Investors “don’t know where the money goes” and “in a few seconds they can lose their savings. “He said
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