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of Collapse of FTX The latest disaster to hit the crypto world and it set off a chain of events close, bankruptcyWhen loss for individual When institutional trader, government, and companies that used crypto for funding and trading.Crypto previously down Bounced back, but this time a loss maybe too big In order for trading to return to “normal”.
The overwhelming response among governments and traditional financial gatekeepers has been to demand regulation of free and open trading markets.
Among the calls for regulation were US Treasury Secretary Janet Yellen, has “remained very skeptical” about cryptocurrencies in general. “Everything we’ve been through in the last few weeks says it’s an industry that really needs proper regulation,” she said. No, but plans are in place to do so, Yellen told reporters.
Yellen’s remarks were nothing new. For years, governments have said they will regulate cryptocurrencies. But they do very little. Yellen’s speech was more like lip service. It is time for the cryptocurrency industry itself to rise to the challenge and adopt its own regulatory framework.
What is needed is a large gathering of all the people (platforms, miners, investment firms, even retail investors) for whom a free decentralized financial system is important, and an open discussion on how the industry can regulate itself. to discuss ideas. Of course, the rules have to be enforced, and the assembly has to decide who will be responsible for their enforcement.
One idea is to hire a top accounting and management company. These companies are those that oversee and audit private lotteries and state lotteries. Requirements that these supervisors may impose include: Retention Guarantee Ensuring that cryptocurrencies held or stored by an organization or platform are backed by “tangible” assets.
Free trade, and private trading, are indeed the “secret sauce” of cryptocurrencies, facing a creeping rise in economic regulation. the gatekeeper claimsWith that comes some regulation, or at least industry standards. Steps should be taken to ensure basic rights, such as keeping small investors from being deceived. And recent events in the cryptocurrency world have made it clear that there is a need for light regulation, at least to protect investors.
In addition to ensuring accounts and platforms follow established rules, regulators need to develop best practices and methods to deal with stress, investor panic, and rapid changes in cryptocurrency values. Some of these best practices may also include recommendations for developing advanced algorithmic trading tools. For example, it will stop trading if the price breaks out of the framework it was set in, essentially stopping trading while the market absorbs the situation and recovers.
If the industry takes this gigantic but important mission into its own hands, regulation will not only come to fruition more quickly, but it will also be better suited to the core ethos of cryptocurrencies. The regulations governments are likely to have in mind, even if they succeed in enacting them, are what draws people to cryptocurrencies in the first place: anonymity, trading with anyone the way they want. Freedom can be compromised, if not completely undercut.Wanted, independence from the Federal Reserve boom-bust cycle We are all obedient.
“Regulations” could convert cryptocurrencies into “digital currencies” that are no different than dollars, but because they’re online, they’re even easier for governments to track, and they don’t need blockchain.
This is unfortunate because cryptocurrencies represent a value that many people around the world aspire to. However, if the regulations imposed on cryptocurrencies can reflect those values, they will ensure that trading is free while protecting investors and institutions from the kind of excesses committed by FTX and other companies. If they can, their value may be preserved.
The current scandal is disappointing, to say the least, and clearly bad actors need to be rooted out. Crypto advocates should always make it clear to potential investors that they are dealing with a high-risk and often volatile asset. It also requires the use of advanced technology to ensure investor protection. But it should be borne in mind that the industry is much broader than these villains. The ideas, principles and ideals that emerge from cryptocurrencies will undoubtedly have a great impact on our freedom. If we are serious about our future as an industry, we need to act now to develop a regulatory framework.
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