Swiss Regulator Urges Financial Watchdogs to Protect Crypto Investors – According to the director of the Swiss financial watchdog, cryptocurrency trading is becoming more and more like the American stock market in the late 1920s. According to the senior official, regulatory organizations everywhere need to do more to protect investors.
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 public about the dangers of investing in cryptocurrencies, including “manipulation of opaque crypto markets.”
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According to a statement made by Urban Angehrn, CEO of Switzerland’s Financial Market Supervisory Authority, much more may be done in that area. Angehrn added the following when speaking at a conference in Zurich, Switzerland:
“It seems to me that much of the trading in digital assets resembles the American stock market in 1928, where all types of abuse, pump and dump, are actually quite frequently occurring now.”
Additionally, the top Finma official advised his coworkers to “consider the potential of technology to make it easy to deal with the vast amounts 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 in November 2021, the total market capitalization of the cryptocurrency industry dropped to $900 billion. The market capitalization leader in cryptocurrencies, Bitcoin (BTC), had its first decline below $20,000 per coin since December 2020 earlier this month.
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Although this year’s losses in value reached over 60%, the research notes that high inflation and rising interest rates have also caused a capital flight from other higher-risk assets and stocks. In light of this context and the issues at companies like Celsius, regulatory pressure on the sector is expected to rise.
