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According to the senior official, regulatory organizations need to do more to protect crypto investors.
More Regulations Are Needed for the “Abusive” Crypto Market, Says a Swiss Financial Watchdog Executive.
The Crypto market is becoming the American stock market
According to the director of the Swiss financial authority, cryptocurrency trading is becoming more and more like the American stock market in the late 1920s.
The $900 billion cryptocurrency asset market, which is only partially regulated in many jurisdictions, is still under scrutiny by governments, according to a report published on Wednesday by Euronews.
Authorities have repeatedly warned the investors about the dangers of investing in cryptocurrencies, even about “manipulation of opaque crypto markets.”
According to a statement made by Urban Angehrn, CEO of Switzerland’s Financial Market Supervisory Authority, much more may be done in that area (Finma).
The senior Finma official says “consider the possibilities of technology to make it simple to work with the vast volumes of data and to safeguard customers from trading on abusive markets.” His statement comes amid recent market volatility and issues with a few cryptocurrency projects.
From almost $3 trillion the total market value of the cryptocurrencies dropped to $900 billion. This month, Bitcoin (BTC), had its first decline below $20,000 per coin since December 2020.
About FINMA?
The financial regulatory body in charge of regulating Switzerland’s financial markets and service providers is called the Swiss Financial Market Supervisory Authority, or “FINMA.”
It was established in 2002 and is an autonomous organization with a base in Bern. It has control over banks, insurance firms, stock exchanges, securities dealers, and collective investment plans.
It is in charge of preventing money laundering and, where required, managing bankruptcy and financial reorganization processes.
In addition to monitoring the supervised institutions’ adherence to the necessary laws, ordinances, directives, and regulations, as well as the requirements for the granting of licenses that must always be met, FINMA also issues operating licenses for businesses and organizations that are under its supervision.
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Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
