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Regulation warning for all crypto investors
Cryptocurrency is gaining popularity with nations like El Salvador embracing digital coins
However, the sector remains mostly unregulated, and there’s a new warning for those wanting to invest.
In a world turning to digitalisation, cryptocurrencies are on the trend. They’re volatile, and just a single tweet by Elon Musk can see them rise or fall.
As more people start investing there remains plenty of talk around risks associated with cypto – and how regulated it really is.
Nations around the world are working through regulatory framework, including in most recent weeks, The European Union
The EU’s framework for regulating crypto is one step closer to ratification.
Last week the European Council, which sets the EU’s political agenda, adopted its position on the Markets in Crypto Assets framework, according to a statement on its website.
This means that the Council and the European Parliament can now enter into negotiations on the proposal for regulation before it is formally adopted as law.
But in most recent weeks the spotlight’s been on Australia – after the countries biggest bank made a bold move.
As more younger Australians choose cryptocurrency investments to fast-track their savings, The Commonwealth Bank, now wants a slice of the pie.
CBA’s head of retail banking, Angus Sullivan, says the bank is now setting up its own pilot platform to buy, sell and hold cryptocurrencies.
So – as popularity grows – could we see more banks around the world like HSBC, CITIBANK OR ANZ join the party?
Within Australia, legal framework for cryptocurrency investments appears to be in the works
The industry made hundreds of submission to a Senate Select Committee chaired by Liberal MP Andrew Bragg looking into how to tighten up the industry, however while players in the cryptocurrency industry say they want more regulation, history shows investors respond poorly to new rules.
In November 2019, the price of Bitcoin crashed when China accelerated a crackdown on cryptocurrency businesses.
In most recent weeks India now plans to join China – proposing a ban on private cryptocurrencies.
It follows – just months ago – a major scam linked to the popular Netflix series Squid game – where someone on the internet created SQUID COIN and soon later took off with millions of dollars from those that invested in it.
Cryptocurrencies are known for their wildly unpredictable price fluctuations, damage to the environment and use by criminals to try to disguise illegal activities, such as money laundering.
The boss of the CBA says One of the biggest risks banks face when it comes to cryptocurrencies is being left out of the market altogether.