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Competition and Hype Drive Young Crypto Investors, UK Watchdog Finds

Competition and Hype Drive Young Crypto Investors, UK Watchdog Finds

A sizable majority of young investors seeking high-risk opportunities are motivated by competition and hype, a new survey has indicated. They often turn to cryptocurrency and forex products, according to the poll conducted by the U.K.’s financial regulator.
FCA Launches ‘Investsmart’ Campaign Targeting Risk Prone Investors
The U.K.’s Financial Conduct Authority (FCA) has carried out new research into the attitudes of young investors towards high-risk products. The watchdog has surveyed 1,000 respondents, aged between 18 and 40, as it launches a 5-year campaign to reach out to inexperienced investors that could cost the British taxpayer £11 million ($15 million).
Through the poll, the regulator has been able to establish that many of these investors are driven by competition with friends and family members when investing in cryptocurrency and forex. Three-quarters of the surveyed, 76%, said they felt a sense of competitiveness while two-thirds, or 68%, likened the experience to gambling.

At the same time, only a fifth of all respondents, 21%, were considering holding their most recent investment for more than a year and just 8% were expecting to keep the assets for at least five years. That’s despite a prevailing preference (60% of the polled) for long-term investments providing more stable, albeit lower, returns.
Hype in the news and on social media has been another driving force for new investors looking into acquiring high-risk products. Well over half of the participants in the study, 58%, said they felt encouraged to put funds into investments they were constantly hearing about in the news coverage, through social media channels, and from other people.
FCA’s new research also shows that most of the young investors who bought cryptocurrencies, a staggering 69%, believed these were regulated by the FCA and another 57% thought the same is valid for the forex products they purchased. The financial watchdog has concluded that these people were unable to understand the lack of adequate protection for them and their money.

The financial authority also notes that the survey has been conducted after around a million U.K. investors increased their holdings or made a high-risk investment between April and October 2020, during the height of the Covid-19 pandemic. Announcing the results of its research, the FCA further emphasized:
The regulator is concerned that new investors are increasingly accessing higher-risk investments which may not be right for them, or reflect their risk tolerance.
The regulator now wants to help investors make the right decisions through its Investsmart campaign which was launched on Wednesday. The initiative is part of the agency’s consumer investments strategy. It was announced in September, with the goal to build investor confidence and limit the number of people falling victim to scams or being enticed to invest in products that are too risky.
Investsmart targets inexperienced investors through social media and online, the FCA detailed. The campaign urges investors to ignore the hype and directs them to the regulator’s website where they’ll be able to receive appropriate assistance. “With our InvestSmart campaign we’re taking an innovative approach to reaching those tempted by high-risk products so that they can better understand the risks and where to get advice,” said Sarah Pritchard, executive director of markets at the FCA.
Do you agree with the findings in the FCA survey? Let us know in the comments section below.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Coingecko Publishes Q3 Crypto Report — BTC Outperformed Every Major Asset Class, Altcoins Decouple

Coingecko Publishes Q3 Crypto Report — BTC Outperformed Every Major Asset Class, Altcoins Decouple

On Thursday, the crypto asset aggregation portal Coingecko published the firm’s 2021 third-quarter report which shows a number of different findings. According to the study, for the most part, the crypto economy recovered from the market downturn in May as the top 30 market caps grew by 31% in Q3. The report shows that altcoins continue to decouple (specifically those from alternative chains) and the leading stablecoin tether has been losing its share “as the preferred stablecoin.”
2021 Q3 Cryptocurrency Report Observes the Crypto Landscape and Bitcoin’s Third-Quarter Market Performance
This week Coingecko’s analysts and founders’ Bobby Ong and TM Lee published the firm’s 2021 Q3 Cryptocurrency Report which observes the crypto economy’s third quarter. The study delves into a myriad of subjects including decentralized finance (defi), non-fungible token (NFT) assets, and Q3 crypto market performances. In the founder’s note section of the report, Ong and Lee explain that “NFTs are redefining value and culture.”
“​​NFTs are here to stay and have proven themselves to be the gateway drug for mainstream adoption. We have been big fans of NFTs since learning about them in 2016,” the Coingecko founders detail.

Furthermore, the report discusses bitcoin (BTC) at great length and notes that the leading crypto asset saw an increased Q3 price return of around 25%. “Bitcoin ended Q3 2021 at $43,859, a 25% increase quarter-on-quarter and had consolidated since its retracement from Q3’s peak,” the report details. However, at the same time, the Coingecko research finds there was an increase in altcoin dominance.

“Altcoins’ dominance [continued] to outperform Bitcoin’s which declined by as much as 4.5%, signifying the growing sentiment that altcoins are decoupling from Bitcoin. The exceptions, however, are Cardano and Tether. Tether marked the biggest decline with a 15.7% drop,” the researchers add. Stablecoins that increased in dominance include USDC, BUSD, DAI, and UST.

Strong Hashrate Recovery, Bitcoin Outperforms Traditional Assets and Indices
The 40-page report explains that the BTC hashrate increased 54% in the third quarter and the research emphasizes the bitcoin mining crackdown that took place in China. “The strong hashrate recovery may be linked to the great miner migration from China to the rest of the world,” Coingecko’s report details.

The report coincides with new data from Cambridge University’s Bitcoin Electricity Consumption Index (CBECI) project, which shows that a great number of mining operations now reside in the U.S. During the third quarter, Coingecko researchers note that bitcoin (BTC) has “climbed 25% and outperformed all other major asset classes.” “All major asset classes and indices performed worse in Q3 2021 relative to Q3 2020 except for DXY and the Nasdaq index,” the study’s researchers noted.
The research dives into other metrics as well, and in Q3 2021, public companies controlled around 1.11% of the entire BTC supply. Additionally, the report notes that BTC’s market valuation is 13.5X away from surpassing gold’s overall market capitalization.
Since Coingecko’s Q3 2021 report was published, bitcoin (BTC) has increased a great deal in value. For instance, the day before the report was published BTC was swapping for $54,887 per unit and today the crypto asset is exchanging hands for above $61.2K per BTC. That’s an increase of 11.59% during the last two days.
What do you think about Coingecko’s 2021 third quarter crypto-asset report? Let us know what you think about this subject in the comments section below.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Bitcoin Is Now World’s 8th Most Valuable Asset — BTC Now Targets Silver’s $1.31T Market Cap

Bitcoin Is Now World’s 8th Most Valuable Asset — BTC Now Targets Silver’s $1.31T Market Cap

The price of bitcoin had crossed the $60K zone at 1:30 a.m. (EST) early Friday morning. The leading crypto asset’s latest price jump has made it so bitcoin’s overall market valuation of $1.119 trillion has surpassed Facebook’s market capitalization. The digital asset is also nearing the entire net worth of all the silver in the world as bitcoin is 17.3% away from surpassing the precious metal’s overall capitalization.
Bitcoin Surpasses Facebook’s Overall Worth, Needs to Gain More Than 17.33% to Exceed Silver
Bitcoin is currently the eighth-most valuable asset in the world just above the market valuation of the corporate entity Facebook’s market cap. Today, statistics from the website companiesmarketcap.com indicate that BTC’s market cap is $1.119 trillion and Facebook’s market valuation is $926.27 billion. It’s not the first time bitcoin (BTC) surpassed the social media company’s entire value, as Bitcoin.com News reported that BTC grew larger than Facebook during the first week of January this year.
The web portal companiesmarketcap.com on Friday, October 15, 2021. Screenshot was taken just before bitcoin once again crossed the $60K zone at 10:15 a.m. (EST).
Interestingly, at that time, BTC was only changing hands for $41,462 per unit while Facebook’s market cap was $758 billion. Today, both BTC’s and Facebook’s market caps are higher and Facebook is valued at $926.27 billion. Alongside this, in January 2021, BTC still had yet to surpass Tesla, but today’s market valuations show BTC is two spots ahead of the electric car manufacturer. BTC is also ahead of Berkshire Hathaway (BRK-A) as the overall worth of BRK-A shares is $636.97 billion on Friday.
The next asset BTC needs to surpass is silver (Ag) as all the silver in the world today is estimated to be worth $1.313 trillion. BTC’s $1.119 trillion valuation needs to exceed 17.33% in order to get past the overall net worth of the global silver supply. In addition to silver, gold (Au), Apple, Microsoft, Saudi Aramco, Alphabet (Google), and Amazon are ahead of BTC as well. BTC has a long way to go to outpace the top precious metal, Au, as it must gain more than 905% just to outperform gold’s global worth.

Bitcoin Needs 112% Gains to Beat Apple — If Bitcoin Surpasses Apple Satoshi Will Be the World’s Wealthiest Individual
In order to beat the second most valuable global asset, Apple (AAPL), the leading crypto-asset must exceed gains of more than 112.3%. At that point, BTC would be the second-most valuable asset worldwide. In order for BTC to overtake AAPL’s overall market valuation, the crypto would need to be valued at $125,257 per unit. Of course, that $125K estimate is based on the number of BTC in circulation today and by then more bitcoins will be issued which means the $125K estimate would likely be lower.
With Friday’s current 18,844,512 circulating supply of BTC in existence, in order to beat gold, each bitcoin would have to be worth $619,500. Another interesting fact is that if BTC ever surpasses Apple and comes close to the overall market valuation of gold, Bitcoin’s unknown inventor will be the world’s richest person (or group).
What do you think about bitcoin as the world’s eighth most valuable asset and how the crypto recently surpassed social media giant, Facebook? Let us know what you think about this subject in the comments section below.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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TradingView completes new funding round with $3B valuation

TradingView completes new funding round with $3B valuation

TradingView, the price charting platform used as a reference for price movements of cryptocurrencies and other assets, has secured $298 million in a funding round to attain a $3-billion valuation.Led by TradingView’s new investor, Tiger Global, the funding follows a strong growth of the platform’s user base, mostly retail investors, during the pandemic. According to the announcement, TradingView experienced a 400% increase in new accounts and a 237% increase in visitors in the last 18 months.TradingView CEO and co-founder Denis Globa highlighted Tiger Global’s expertise in fintech, adding that the partnership would contribute to informed financial trading. Established in 2011, the platform enables over 30 million monthly users in 180 countries to access price charts of assets such as cryptocurrencies, stocks and futures. “We built this company with the belief that people everywhere want the same thing: to be in control of their own economic futures,” Globa said, adding, “We work towards this by creating an environment where all traders and investors can look first, then leap.”Related: Elliptic raises $60M to advance crypto analytics serviceThe company said that TradingView aims to bolster its broker relationships with partnerships and integrations with major brokerage firms in a bid to enable visitors to trade directly from the platform.Tiger Global’s Alex Cook said that TradingView’s global standing among retail investors positions the company “to be the default social network and financial analysis platform used by all traders and investors.”A known investor in crypto, Tiger Global recently led another mega-funding round. Together with Coatue Management, the venture capital has invested $400 million into the crypto payments startup MoonPay. 

MoneyGram launches USDC settlement using the Stellar blockchain

MoneyGram launches USDC settlement using the Stellar blockchain

Financial services company, MoneyGram International, has partnered with the Stellar Development Foundation to enable consumers to send money using Circle’s popular stablecoin, USD Coin (USDC) and convert directly to and from fiat. Per a 6 Oct. announcement, MoneyGram has integrated support allowing crypto wallets connected to the Stellar Network to access its global retail platform. Working alongside Circle, MoneyGram will also enable “near-instant backend settlement”, account funding, and local fiat withdrawals using the USDC stable token.United Texas Bank will act as the settlement bank to complete the process within the regulatory framework.”As crypto and digital currencies rise in prominence, we’re especially optimistic about the potential of stablecoins as a method to streamline cross-border payments.” said Alex Holmes, MoneyGram Chairman and CEO.The partnership is expected to launch at the end of 2021 in select jurisdictions, with an expanded international rollout planned in 2022. Denelle Dixon, CEO and executive director of the Stellar Development Foundation, stated:”A new segment of cash users will be able to convert their cash into and out of USDC, giving them access to fast and affordable digital asset services that may have previously been out of reach.”MoneyGram’s integration with Stellar comes just months after the firm moved to allow customers to withdraw crypto assets for cash via its point-of-sale outlets in the U.S. The service was rolled out in partnership with Bitcoin ATM and crypto exchange operator, Coinme Inc.Related: Biden admin weighing bank-like regulation for stablecoin issuersMoneyGram is no stranger to blockchain, having partnered with distributed ledger technology Ripple in June 2019 to collaborate on cross-border payments and foreign exchange settlements with digital assets.However, the deal quickly went south, due to the uncertainty concerning U.S. Securities and Exchange Commission lawsuit targeting Ripple. MoneyGram suspended support for Ripple’s platform during the first quarter of 2021.Stellar was launched by Ripple co-founder Jed McCaleb following his tumultuous departure from the project in 2014.Circle published, on 4 Oct., filings revealing it is cooperating with a subpoena from the SEC that it received in July.

While Politicians Worldwide Clamor Over Tax Evasion, Pandora Papers Show Bureaucrats Are the Worst Offenders

While Politicians Worldwide Clamor Over Tax Evasion, Pandora Papers Show Bureaucrats Are the Worst Offenders

As bureaucrats across the globe continue to ask the common citizenry for access to every financial decision they make, politicians and celebrities worldwide are hiding large amounts of wealth in tax havens according to the Pandora Papers. While American politicians like the Biden administration claim to be against tax corruption, some people view the U.S. as the world’s “main tax lagoon.”
Pandora Papers Expose Hypocrisy Among Bureaucrats Worldwide, US Public Officials Manage to Escape Investigation
During the last month, the Biden administration and other U.S. politicians have been discussing proposed legislation that aims to address tax evasion by the so-called billionaire class and corporate entities. One proposal aims to give the U.S. Internal Revenue Service (IRS) access to bank account information, regardless of tax liability. If enacted, financial institutions across the country would have to report accounts with at least $600 worth of transactions or more. Another proposal aims to introduce “unrealized capital gains” otherwise known as “anti-deferral accounting.”
The Pandora Papers published by the International Consortium of Investigative Journalists (ICIJ) exposes 330+ bureaucrats from various countries, but prominent wealthy Americans and U.S. public officials are not mentioned in the investigation.
Meanwhile, this past week the latest release of the Pandora Papers has been published and the documents unveil a great number of politicians worldwide hiding wealth to stay clear of taxation. The papers were released by the International Consortium of Investigative Journalists (ICIJ) and they claim to reveal the “inner workings of a shadow economy” for the “well-connected.” The papers include two million documents from 14 different service providers, exposing over 330 politicians and public officials from various countries.
The Pandora Papers derive from over two years of reporting from 600 journalists at 150 news outlets that uncovered close to 12 million documents.
The Pandora Papers are two times the size of the offshore accounts and the number of public officials named in the Panama Papers. Offshore asset links stemmed from celebrities too, like the professional cricket player Sachin Tendulkar, model Claudia Schiffer, and the world-famous singer Shakira. Interestingly, prominent American bureaucrats managed to stay out of the investigation’s findings despite the record-setting monetary expansion the U.S. has seen in the last two years.

One Reporter Asks: ‘Why Are There No Big American Names in Pandora Papers?’ Russia’s Press Secretary Says the ‘US Is the Main Tax Lagoon for the Whole World’
A few media outlets like NPR and the Washington Post mentioned tax-evading American bureaucrats and the country’s contribution to the Pandora Papers. The Washington Post (WP) quickly said Americans leverage the same methods of tax evasion but no public official was named in the WP report. A scathing report from the Independent doesn’t mention any American politicians but the author decides to investigate why high profile U.S. citizens were not added to the list in the Pandora Papers. While prominent Americans managed to escape being targeted by ICIJ’s investigation, the country itself did not.
Researchers noted that the U.S. is well known for being a tax haven and people from abroad are hiding funds in specific areas located in the United States. Moreover, the research did find that Americans are hiding money in other countries like Central America, but no specific names were included in the research. “The records also show how a firm in Central America became a one-stop-shop for American clients, allowing them to conceal their assets while facing criminal investigations or lawsuits,” The WP author wrote about the evidence found in the Pandora Papers.
While more than 330 bureaucrats worldwide were mentioned in the Pandora Papers, American politicians managed to escape the investigation. The Biden administration and many other U.S. politicians have been targeting so-called tax offenders, but Vladimir Putin’s press secretary, Dimitry Peskov, ridiculed the U.S. for hypocrisy, calling the country the world’s largest “tax lagoon.”
The Independent highlights that state governments from Nevada and South Dakota have become tax havens for foreign nationals. NPR said both states “adopted financial secrecy laws that rival those of offshore jurisdictions” While the Western media had failed to implicate any prominent American bureaucrats, Russia’s foreign ministry ridiculed the United States over the findings in the Pandora Papers. Russian president Vladimir Putin’s press secretary, Dimitry Peskov, said the papers make U.S. politicians look like hypocrites.
“What catches the eye is which country is the world’s largest lagoon. This, of course, is the U.S.,” Peskov told the press this past week. “This does not correlate at all with their declaration about the fight against corruption… We see that the U.S. is the main tax lagoon for the whole world,” the Russian president’s press secretary emphasized.
Meanwhile, U.S. politicians are attempting to create tax reform that allegedly targets corporate entities and the so-called billionaire class. However, the proposed guidelines mentioned in the “American Families Plan Tax Compliance Agenda” do not seem to target the American wealthy. Civil rights groups and privacy advocates are concerned about the concepts of “unrealized capital gains” which means citizens would have to pay for capital gains before they even sold their assets.
Additionally, IRS commissioner Charles Rettig and Janet Yellen, the Treasury secretary, want banks to report deposit and withdrawal information tied to the average American’s bank account. The mixture of the Pandora Papers and ideas like the proposed tax compliance agenda shows that the political class of so-called public servants in the U.S. have been hypocrites and have clearly been benefitting at the expense of everyone else.
It goes to show, that while politicians all around the world are complaining about the average citizen evading taxes, bureaucrats are the ones breaking their own rules or leveraging legislated loopholes they created to protect their own wealth.
What do you think about the Pandora Papers and why do you think Americans managed to stay out of this investigation? Let us know what you think about this subject in the comments section below.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Bitcoin Will Not Become Legal Tender in Uzbekistan, Central Bank Official Insists

Bitcoin Will Not Become Legal Tender in Uzbekistan, Central Bank Official Insists

Cryptocurrency cannot be adopted as a means of payment in Uzbekistan, a high-ranking official from the country’s central bank has recently stated. Speaking to local media, the regulator’s representative also noted that unlike cryptocurrencies, the national fiat is backed by the bank’s assets. The statement comes in spite of Tashkent’s crypto-friendly moves in the past.
Cryptocurrency Cannot Be Accepted for Payments in Uzbekistan, Monetary Authority Says
Cryptocurrencies such as bitcoin cannot be recognized as legal tender in Uzbekistan and that’s unlikely to ever change, a central bank official told Spot this week. Speaking to the local news outlet, the Deputy Chairman of the Central Bank of the Republic of Uzbekistan (CBU) Behzod Hamraev said:
As an economist, I can assume that it [cryptocurrency] will never be equal to world currencies such as the dollar, euro, yen, ruble.
The representative of the monetary authority pointed out that 28 trillion Uzbekistani sum (the nation’s fiat money) are currently in circulation and they are all backed by the central bank’s assets. “You can even see an inscription of the regulator’s obligations on the banknotes, and cryptocurrency is not backed by anything,” he added.

The government of Uzbekistan incorporated a ban on the use of cryptocurrency for payments into its legislation back in 2019. According to current law, the sum remains the only legal tender in the Central Asian country. A decree issued by the National Agency for Project Management, a regulatory body responsible for the oversight of the digital economy, emphasized:
Crypto assets cannot be used on the territory of the Republic of Uzbekistan as a means of payment.

At the same time, the decree also introduced regulations governing the licensing and operation of cryptocurrency exchanges. Crypto trading was legalized in 2018 but in December 2019, authorities effectively banned residents from purchasing cryptocurrencies on the trading platforms while they were allowed to sell their crypto holdings.
Then, in January 2020, Tashkent announced it planned to set up a national mining pool as a priority, establish a licensed cryptocurrency exchange where miners will be permitted to sell their digital coins, create a blockchain valley and introduce crypto tax exemptions. The regulated digital asset platform, Uznex, operated by the South Korean entity Kobea Group, was launched later the same month.
The latest statement from the Central Bank of Uzbekistan regarding the status of cryptocurrencies comes after El Salvador became the first country to adopt bitcoin (BTC) as legal tender alongside the U.S. dollar. It also follows a similar statement by Dmitry Peskov, spokesman of Russian president Vladimir Putin, who recently said Russia isn’t ready to accept the coin as a means of payment.
Do you think Uzbekistan will change its policies towards cryptocurrencies in the future? Share your expectations in the comments section below.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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India’s Cryptocurrency Legislation Will Be ‘Distinct and Unique,’ Says Lawmaker

India’s Cryptocurrency Legislation Will Be ‘Distinct and Unique,’ Says Lawmaker

The chairman of India’s Parliamentary Standing Committee on Finance explains that cryptocurrency legislation in India will be “distinct and unique.” He added, “We have to balance stability and growth but we recognize how important this whole area of crypto is.”
Lawmaker Provides an Update on Crypto Legislation
Jayant Sinha, a lawmaker of the ruling Bharatiya Janata Party, talked about India’s cryptocurrency legislation Wednesday at an event organized by the Blockchain and Crypto Assets Council (BACC) of Internet and Mobile Association of India (IAMAI).
Sinha, who is the chairman of India’s Parliamentary Standing Committee on Finance, explained that it is not possible for India to adopt the cryptocurrency policies used in advanced economies because the nation still does not have a full capital account convertibility. He clarified that India’s crypto policies will not follow the U.S., Japan, or El Salvador, the country which made bitcoin legal tender this week.
The lawmaker elaborated:
Our solution will have to be distinct and unique simply because of our unique circumstances. We have to balance stability and growth but we recognize how important this whole area of crypto is.
Furthermore, he noted that the committee will consider crypto legislation with national security in mind, adding: “We have to be very watchful about what happens to these crypto assets and cryptocurrencies. Use of these kinds of crypto instruments in terror financing and for domestic security threats is something we have to be mindful of.”

On Tuesday, a former deputy governor of the Reserve Bank of India (RBI), R. Gandhi, said that crypto must be regulated as an asset or commodity in India and governed by existing laws. He explained that “Once cryptocurrencies are accepted, rules governing commodity exchanges could apply and the coins could be used to pay for goods and services,” Bloomberg conveyed, and quoted him as saying, “Then automatically people can start buying, selling and holding.”
According to a recent report, the Indian government is planning to regulate crypto assets as commodities and by use cases. Previously, there were reports of the government planning to ban all cryptocurrencies like bitcoin, allowing only central bank digital currencies (CBDCs) to be issued by the RBI. Meanwhile, the central bank is planning to unveil a digital rupee model by the end of the year.
What do you think about India’s approach to crypto regulation? Let us know in the comments section below.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Crypto is too big to exist outside of public policies, warns SEC chair

Crypto is too big to exist outside of public policies, warns SEC chair

Crypto assets will not last long outside of a public policy framework because “finance is about trust,” warns Gary Gensler, the chair of the United States Securities and Exchange Commission.Speaking to The Financial Times, Gensler stressed the need for a regulatory framework for crypto platforms for their own survival. He explained that crypto assets should be under the same public policy imperatives to protect investors and fight illicit financial activities.He said that the global market capitalization for cryptocurrencies has already surpassed $2 trillion and, if crypto is “going to have any relevance five and 10 years from now, it’s going to be within a public policy framework,” adding: “History just tells you, it doesn’t last long outside. Finance is about trust, ultimately.”Echoing his earlier suggestion for crypto trading platforms to register with the SEC, he said, “There are a lot of platforms that are in operation today that would do better engaging and instead there is a bit of […] begging for forgiveness rather than asking for permission.”Related: SEC boss says DeFi platforms are ‘highly centralized’ and will need to register Gensler argued that the lack of traditional brokers makes crypto and decentralized finance (DeFi) platforms a challenge for regulators because it’s unclear to whom the law applies in the DeFi ecosystem. Calling DeFi a variation of the peer-to-peer lending businesses, he argued that those platforms have “a fair amount of centralization” with governance mechanisms, fee models and incentive systems:“It’s a misnomer to say they are just software they put out in the web. But they are not as centralized as the New York Stock Exchange. It’s sort of an interesting thing that is in between.”Since his appointment in April, the new SEC chair has repeatedly called for robust regulations for the crypto ecosystem. On the other hand, some crypto leaders argue that stricter regulations would not necessarily help to prevent fraud.

Korean FSC chair nominee doesn't think crypto is a financial asset

Korean FSC chair nominee doesn't think crypto is a financial asset

Seung-beom Koh, a nominee for chairman of South Korea’s Financial Service Commission (FSC), does not regard cryptocurrencies as a financial asset. In a press meeting with local journalists, Seung-beom said that fintech experts from prominent organizations such as the G20, the International Monetary Fund and others “find it difficult to see virtual currencies as a financial asset, and think they could not function as a currency.”Seung-beom’s comments coincide with the ongoing surge in crypto trading among young investors, who primarily invest seeking short-term profits, according to The Korean Times. Investors also see cryptocurrencies as a fair chance to buy homes by countering skyrocketing property prices. Koh also pointed out that excessive household credit could negatively impact South Korea’s economy. As of March 2021, the country’s household credit witnessed a 9.5% hike to reach 1,765 trillion won i.e. approximately $1.52 trillion. As a means to curb the increasing household debt, Koh said:“The FSC will push ahead with existing anti-debt measures and come up with additional steps, if needed, by mobilizing all available policy means.”Related: South Korean FSC denies plans to shut down 11 crypto exchangesSouth Korean authorities were reportedly planning to shut down numerous crypto exchanges under the suspicion of operating fraudulent collective accounts and borrowed-name accounts. However, on Aug. 9, the FCS reached out to Cointelegraph to deny such claims of suspending crypto exchanges. The representative stated that the 11 exchanges in question “are required to open up and use real-name accounts for the purpose of collecting deposits.”Just last month, South Korean authorities warned crypto exchanges to voluntarily register with local authorities by Sep. 24 or risk facing jail time or hefty fines.

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