Commoney Wise
  • News
  • Politics
  • Business
  • Finance
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Futures
    • Forex
  • Crypto
  • Price Index
    • Stocks
    • Cryptocurrency
    • Commodities
    • Forex
  • Videos
  • Login
  • Register

  Breaking
EY considers handing retired US partners cut of proceeds from spin-off February 3, 2023
The EU plans to digitise and monetise its borders. Here’s how February 3, 2023
Mortgage rates keep dropping, making housing affordable for millions more: Freddie Mac February 3, 2023
Core Scientific to hand over 27K rigs to pay $38M debt February 3, 2023
USD/CAD sticks to intraday gains above mid-1.3300s, US jobs report (NFP) looms large February 3, 2023
Next
Prev

en English
en Englishes Españolde Deutschfr Françaisit Italianopt Portuguêsru Русскийzh-CN 简体中文hi हिन्दीja 日本語
Casino
  • News
  • Politics
  • Business
  • Finance
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Futures
    • Forex
  • Crypto
  • Price Index
    • Stocks
    • Cryptocurrency
    • Commodities
    • Forex
  • Videos
No Result
View All Result
Commoney Wise
Casino
  • News
  • Politics
  • Business
  • Economy
  • Finance
  • Investing
  • Markets
  • Crypto
  • Tech
  • Videos
Home Markets

The wild world of crypto needs better health warnings

Staff by Staff
December 11, 2022
in Markets
0 0
A A
0

When my dog spots a fox in the garden, he immediately stands to attention and growls softly at the glass door, curly tail vibrating with irritation at this incursion into his territory. He is sure going to show that fox who is boss. Any minute now. 

London’s foxes are a fearless bunch that can handle a fight, and when they spot him squeaking at them from his comfy indoor world, they pay him no heed. It is only when they decide to leave the garden of their own accord that our pampered pooch starts barking furiously to be let out and barrels outside to demonstrate his dominance, safe in the knowledge that the abrasive wild foe has already hopped over the fence.

And so it is with crypto. For years, financial regulators and central banks have whimpered from behind their glass doors at the crypto industry. These tokens, they have repeatedly said, have no intrinsic value. Anyone buying them should be fully prepared to lose everything without any recourse. The warnings have done little to dent the industry.

Now, though, the barking is suddenly louder, more urgent and more assertive. Since the implosion of FTX, one of the biggest and supposedly one of the more reliable exchanges, authorities have cranked up the volume on their warnings. 

“Finally, there are more people blowing the bullshit whistle,” Senator Elizabeth Warren told news outlet Semafor in an awkwardly worded but nonetheless impactful turn of phrase. 

Other heavyweights have piled in. US Treasury secretary Janet Yellen has described crypto as “an industry that really needs to have adequate regulation. And it doesn’t.”

The thing is, regulators have spent so long getting to this point that some have come around to the view they should not bother properly regulating the stuff after all.

That was the view articulated late last month by the European Central Bank. In an unusually punchy blog post entitled ‘Bitcoin’s last stand‘, the ECB dunked on the crypto industry from a height. Stability in the price of bitcoin — the biggest token around — is “an artificially induced last gasp before the road to irrelevance”, wrote director-general Ulrich Bindseil and adviser Jurgen Schaaf. It is “rarely used for legal transactions”, it is “cumbersome, slow and expensive” and it is an “unprecedented polluter”. You get the idea, and you can imagine the feedback this has received from the crypto true believers.

But regulation, they added, “can be misunderstood as approval”. This is a good point: It can give the impression that crypto tokens are just like stocks, bonds or other regulated investment products. 

This feeds in to the argument that some have made to just let crypto burn. Already, we have seen how unsuspecting punters can be drawn in to something that looks like a professional trading venue. Plastering regulators’ logos on these sites could very well bolster the impression of official oversight. 

This is not the only reason to let crypto wither and die on its own. Others are that the turmoil in the crypto industry has left the rest of the financial system unscathed. What’s more, determined buyers of crypto often simply use VPN connections to the internet to skirt national rules, making some elements of regulation a waste of time. 

But the timing here is awkward. As the ECB blog notes, the EU’s Markets in Crypto-Assets Regulation, or MiCA, is finally slowly coming to life. At a recent FT event, I asked Verena Ross, chair of the European Securities and Markets Authority, which is leading this effort, whether it was worth the bother.

Perhaps inevitably, she said yes. Boundaries between traditional finance and crypto are “blurring”, she said. Crypto tokens are listed on the same trading platforms as tokens with purported links to regulated stocks, for instance. “Therefore closing your eyes and saying that should stay in the speculative field and it’s a casino that no one wants to enter, I think may be a bit short sighted,” she said.

Ross is acknowledging here that in the gap between regulators’ tails starting to twitch and rulemakers finally running out to assert their authority, these tokens have become known as assets. Betting on them is known as investing. Collections of tokens are known as portfolios. Crypto has entered the lexicon of mainstream investing without the rules and oversight that entails. 

It is perfectly reasonable for amateur investors to think they are dabbling in something with some degree of protection and oversight. Where are the high-profile public awareness campaigns telling them that is not the case? Where are the warnings of addiction and of the high rate of losses that you see on authorised spread betting sites?

It is tempting to grab some popcorn and just watch crypto implode, especially to avoid having regulators appear to give a stamp of approval on something they will never be able fully to control. Even if the world does opt for proper global regulation, that could still take years to formulate and roll out. But unsuspecting punters do not deserve to be the collateral damage here. Better public warnings have to be part of the solution.

katie.martin@ft.com

Read the full article here

ShareTweetSharePinShareSendShare
https://www.madmoneycasino.com/?faff=667&sub=DemCasino

Related Articles

Forex

USD/CAD sticks to intraday gains above mid-1.3300s, US jobs report (NFP) looms large

February 3, 2023
Stocks

Kevin Binder to become CFO of Daimler Greater China Ltd

February 3, 2023
Markets

European stocks and US futures slip after week-long rally

February 3, 2023
Forex

US Dollar to weaken this year, with periods of volatility and bouts of strength – MUFG

February 3, 2023
Stocks

Shell ADR earnings missed by $0.90, revenue topped estimates

February 3, 2023
Futures

Oil ticks lower, headed for weekly drop, as traders await clarity on China demand

February 3, 2023
Load More

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Commoney Wise

Commoney Wise is your one stop news website for the latest finance, business and crypto news, follow us to get the news that matters to your minute by minute.

Our Other Brands Kronosslott, Commoneywise, Demcasino.de, SportsExtremes.tv, Slotgamesusawwr, Coin Desk Times, Kingsofgolf.be

Topics

Business Commodities Crypto Economy Finance Forex Futures Investing Markets News Politics Stocks Tech Videos

Get Informed

The most important world news and events of the day

Be the first to know latest important news & events directly to your inbox.

By signing up, I agree to our TOS and Privacy Policy.

  • Privacy
  • Terms
  • Press
  • Advertise
  • Contact

© 2022 Commoney Wise. All Rights Reserved.

No Result
View All Result
  • News
  • Politics
  • Business
  • Finance
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Futures
    • Forex
  • Crypto
  • Price Index
    • Stocks
    • Cryptocurrency
    • Commodities
    • Forex
  • Videos

© 2022 Commoney Wise. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.