Cryptocurrency trading increasingly resembles the US stock market of the 1920s, Switzerland’s top market regulator said on Wednesday, calling on regulators to take more action to protect consumers from abuse in the freewheeling sector.
Governments are trying to figure out how to best monitor the $890 billion (approximately Rs 6,971 crore) crypto market, which is currently covered by only a handful of regulations.
Regulators and policymakers have long worried about the risk to consumers from cryptocurrencies, with US securities watchdogs warning about the potential for manipulation in opaque crypto markets.
“There is much more that can be done,” said Urban Enghorn, CEO of the Swiss Financial Market Supervisory Authority (FINMA).
“It seems to me that a lot of trading in digital assets looks a lot like the American stock market in 1928, where all kinds of abuse, pump and dump, really often are common,” Engern said at a conference in Zurich.
“Let us also think about the potential of technology to deal with large amounts of data and protect consumers from trading in abusive markets,” Angehrn said.
The crypto market has been in turmoil over the past few weeks following the explosions of several major companies.
The overall crypto market has plummeted from a record $3 trillion (about Rs 2,34,95,400 crore) in November to nearly $900 billion (approximately Rs 70,49,002 crore) in November, after US crypto lender Celsius Network reported losses last year. developed. The accounts of its 1.7 million customers have been frozen.
Bitcoin, the largest cryptocurrency, fell below $20,000 (about Rs 15,66,401) on June 18 for the first time since December 2020. It has fallen nearly 60 percent this year, indicating a flight from rising inflation and coming under pressure from rising interest rates. From stocks and other high-risk assets.
The crisis at Celsius is likely to add to US regulatory pressure on an already defensive sector this year, among other woes.
© Thomson Reuters 2022
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