Management Stress Will Come Sooner When Top Investors Fear Crypto Loss

Bloomberg analyst Lionel Laurent said that many seasoned investors have ignored the legal and regulatory issues in the cryptocurrency market. However, sooner or later business management will come and investors need to be better prepared.

Timothy May, one of the spiritual pioneers of cryptocurrency, predicted in the 1990s that untraceable digital money would make online casinos, bank secrecy and money laundering activities a success. He said the law was passed, but anonymity and freedom remained valid until the government could no longer fight back.

The cycle comes almost 30 years later as regulators created new rules for the unregulated $ 2.4 trillion cryptocurrency market. Crypto executives received questions from U.S. lawmakers on Wednesday following the review and funding of the trading platform in the new age digital media hotspot. Officials acknowledged the need for additional monitoring, but warned the company would travel due to strict regulations.

More management is done, and for good reason. Administrators have defended their work to crack down on malicious criminals, but overall financial protection standards and consumer oversight remain weak. In a March survey of 16 platforms, only four had "significant" rights in the market. Trade fairs are usually held in coastal jurisdictions. Binance claims that it has no headquarters and that "there is no building around and stable." Theft, fraud and theft are common.

What is more confusing, however, is the speed at which both traders and online gamers are looking to make money if they are to put their money up for doing business. According to data from PitchBook, venture capitalists have invested more than $ 27 billion in cryptocurrency as of this year, including $ 1 billion in funding for Bahamas-based FTX. In May, a company backed by billionaires Peter Thiel and Alan Howard invested $ 10 billion in digital assets and cash in Bullish Global, a Gibraltar-approved company.

At the start of this year, Binance failed to meet its goal of raising $ 100 million, but is trying again.

Investment firms have clearly been exposed to high risk firms that violate the law. This is a behavioral test. If you act too fast, cancel your day job and ask for forgiveness, the boss will follow them.

European gig industry rules for companies like Deliveroo and Uber shipping software, for example, were announced a few years after the companies started their businesses. However, in the case of venture capital firms, the participants are not transparent and financially risky, so it appears that they have gotten into the cryptocurrency business to the point of comparing the Bank of England to the Bank of England. 2008 financial crisis. finance “innovation”). Always very brave.

The “crypto culture” and the Silicon Valley craze has spilled over to venture capital of non-commercial companies. It seems that a lot of people are abandoning the kind of risk management (a risk that foreigners cannot do) that is strictly regulated by the industry has always been introduced to the benefits of cryptocurrencies.

After being warned by global regulators this summer, Binance said in a statement last year that its domestic consumer base had grown by 70%. Some hedge funds have decided to quit Binance "lightly" after being warned.

It's time to ask whether investors let Fear of the Move (FOMO) intentions win.

Martin Finnegan, partner of Punter Southall Policy, warns that "the legal risks of investing in multiple ecosystems cannot be underestimated". Regulators like the Chicago Mercantile Exchange (the world's largest trading and trading platform) are designed to streamline and eliminate competition, competition, and risk. The role of unregulated cryptocurrency trading platforms is paramount. It combines brokerage, supervision and lending.

According to the American Futures Industry Association, the “many” functions of the unregulated platform will be the most trading (most traders send the wrong information to the market). , a joint venture between buyers and sellers) and believe that the following business data suggests that this is not possible. .

The law has already brought about changes in the industry. The new exchange believes that following the rules is a competitive advantage. Archax, a London stock exchange, is a multi-party company owned by the Financial Services Commission and will begin operations in January. Swarm claims to be the first financial services division to be overseen by the German Federal Financial Supervisory Authority. Binance and FTX are investing in regulatory frameworks, and both have released product portfolios.

These changes do not answer all of the questions traders face when trading cryptocurrencies. In a world focused on the environment, the social and regulatory environment (ESG), Bitcoin's environmental footprint remains questionable. different. The experiments with digital advantages of central banks like France and Switzerland will continue and could cause serious damage.

But as regulators try to control sentiment online, investors must move towards a world unrelated to laissez-faire platforms, knowing the change will come sooner than expected.