The head of the Swiss financial watchdog has commented that crypto trading is similar to the US stock market of the late 1920s. The highly placed official believes that regulatory agencies around the world should do more to ensure the safety of investors.
Swiss financial watchdog executive calls for more regulations for ‘outrageous’ crypto market
Governments are still trying to find the best way to oversee the $900 billion crypto asset market, which is only partially regulated in many jurisdictions, Euronews said in a report on Wednesday. The authorities have issued several warnings regarding the risks associated with cryptocurrency investments, including “manipulation of opaque crypto markets”.
According to a statement by Urban Engeren, CEO of Switzerland’s Financial Market Supervisory Authority (FINMA), a lot can be done in this regard. Speaking during a conference in the Swiss city of Zurich, Angehrn further commented:
It seems to me that trading in digital assets pretty much resembles the US stock market in 1928, where all kinds of abuse, pump and dump, are actually quite often common.
FINMA’s top executive urged his colleagues to “think about the technology’s potential to deal with massive amounts of data and protect consumers from trading in abusive markets”. His call comes amid turmoil in the market and problems with some crypto projects over the past few weeks.
The total capitalization of the crypto market fell from around $3 trillion in November, 2021 to $900 billion. Bitcoin (BTC), the cryptocurrency with the largest market cap, earlier this month fell below $20,000 per coin for the first time since December 2020. ,
Losses in its value this year have reached nearly 60%, the report said, but high inflation and rising interest rates have prompted a flight of capital from other high-risk assets and stocks as well. Against this background, and given the trouble with companies like Celsius, regulatory pressure on the industry is likely to increase.
Do you expect regulators to adopt stricter regulations for the crypto sector in the near future? Share your thoughts on this topic in the comment section below.
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