Swiss Regulator Urges Financial Watchdogs to Protect Crypto Investors
Crypto trading is increasingly similar to the U.S. stock market of the late 1920s, the head of the Swiss financial watchdog has remarked. The high-ranking official believes that regulatory agencies around the world should do more to ensure investor protection. Swiss Financial Watchdog Executive Calls for More Regulations for ‘Abusive’ Crypto Market
Governments are still trying to find the best approach to overseeing the $900-billion crypto asset market, which in many jurisdictions is only partially regulated, Euronews noted in a report on Wednesday. Officials have issued numerous warnings about the risks associated with cryptocurrency investments, including “manipulation of opaque crypto markets.”
Much more can be done in that regard, according to a statement by Urban Angehrn, CEO of Switzerland’s Financial Market Supervisory Authority (Finma). Speaking during a conference in the Swiss city of Zurich, Angehrn further commented: It would seem to me that a lot of trading in digital assets looks like the U.S. stock market in 1928, where all kinds of abuse, pump and dump, are now in fact frequently common.
The top Finma executive also urged his colleagues to “think about the potential of technology to make it easy to deal with the large amounts of data and to protect consumers from trading on abusive markets.” His call comes amid market turmoil and problems with some crypto projects in the past several weeks.
The overall capitalization of the crypto market fell to $900 billion, from around $3 trillion in November, 2021. Bitcoin (BTC), the cryptocurrency with the largest market cap, dropped below $20,000 per coin earlier this month, for the first time since December 2020.
This year’s losses in its value reached approximately 60%, but high inflation and rising interest rates have prompted a flight of capital from other higher-risk assets and stocks as well, the report points out. On this backdrop, and given the troubles at companies like Celsius, regulatory pressure on the industry is likely to increase. Tags in this story Celsius, Crypto, crypto industry, crypto market, crypto sector, Cryptocurrencies, Cryptocurrency, finma, Regulations, regulator, Regulators, rules, swiss, Switzerland, watchdog, watchdogs
Do you expect regulators to adopt stricter rules for the crypto sector in the near future? Share your thoughts on the subject in the comments section below. Lubomir Tassev
Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration. ECB Chief Lagarde: Crypto and Defi Could Pose "Real Risks" to Financial Stability REGULATION | 5 hours ago Fed Chair Powell: We"re Not Seeing Significant Macroeconomic Implications From Crypto Sell-Off REGULATION | 7 hours ago
Image Credits: Shutterstock, Pixabay, Wiki Commons, Shutterstock / T. Schneider Previous articleNamibian University Set to Offer Master’s Degree in Blockchain Technology in 2024 Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItTony Hawk"s Latest NFTs to Come With Signed Physical Skateboards
Last December, the renowned professional skateboarder Tony Hawk released his “Last Trick” non-fungible token (NFT) collection via the NFT marketplace Autograph. Next week, Hawk will be auctioning the skateboards he used during his last tricks, and each of the NFTs ... read more.Draft Law Regulating Aspects of Crypto Taxation Submitted to Russian Parliament Today"s Top Ethereum and Bitcoin Mining Devices Continue to Rake in Profits Australia to List Bitcoin ETF After 4 Clearinghouse Participants Commit to Meet Stringent Margin Terms Interest in Real Estate Investments in Spain Grew 400%, With Some Using Crypto and Stocks as Payment Method