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Swiss Regulator Urges Financial Watchdogs to Protect Crypto Investors

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Cryptocurrency trading is increasingly reminiscent of the US stock market of the late 1920s, said the head of the Swiss financial supervisory authority. The senior official believes that regulators around the world should do more to ensure investor protection.

Swiss Financial Watchdog CEO Calls for More Rules for ‘Illegal’ Cryptocurrency Market

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Governments are still trying to figure out the best approach to oversee the $900 billion crypto asset market, which is only partially regulated in many jurisdictions, Euronews noted in a report released on Wednesday. Officials have repeatedly warned about the risks associated with investing in cryptocurrencies, including “manipulating opaque crypto markets.”

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Much more can be done in this regard, according to Urban Angern, CEO of the Swiss Financial Market Supervisory Authority (Finma). Speaking at a conference in the Swiss city of Zurich, Angern further commented:

It seems to me that a lot of digital asset trading is like the US stock market in 1928, where all sorts of abuse, pumping and dumping, is actually common now.

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Finma’s top manager also urged his colleagues to “think about the potential of technologies that will make it easier to work with large amounts of data and protect consumers from trading in unfair markets.” His call came amid market turmoil and problems with some crypto projects over the past few weeks.

The total capitalization of the crypto market has fallen to $900 billion from about $3 trillion in November 2021. Bitcoin (BTC), the cryptocurrency with the largest market capitalization, fell below $20,000 per coin earlier this month for the first time since December 2020.

This year, losses in its value have reached about 60%, but high inflation and rising interest rates have also caused capital outflows from other assets and higher-risk stocks, the report notes. Against this background, and given the problems of companies such as Celsius, regulatory pressure on the industry is likely to intensify.

Do you expect regulators to adopt stricter rules for the crypto sector in the near future? Share your thoughts on this subject in the comments section below.

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Credit : news.bitcoin.com

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