The head of Swiss financial surveillance said that crypto trading has become more similar to the U.S. stock exchange of late 1920s. This high-ranking official thinks that regulators around the globe should be doing more to protect investors.
Swiss Financial Watchdog Executive Calls for More Regulations for ‘Abusive’ Crypto Market
Euronews, a Wednesday report, noted that the governments continue to search for the most effective way to manage the market of crypto assets worth nearly $900 million. 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). Angehrn also made the following comments at a Zurich conference.
A lot of digital asset trading looks a lot like the U.S. stock exchange in 1928. Here, abuses, pump and dump are all too 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.
After being around $3 trillion at the end of November 2021 and $900 billion in 2018, the overall market capitalization for crypto has fallen to $900 Billion. Bitcoin (BTC) was the crypto with the highest market capital, falling below $20,000 for the first month 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. With the recent troubles of companies such as Celsius, regulator pressure is expected to rise.
Are you expecting regulators to adopt tighter regulations for crypto in the near-term? Please comment below to share your views.
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