- There has been a huge sell-off in the crypto market in the last few days.
- The prices of major cryptocurrencies like bitcoin and ether have dropped significantly.
- Investors have suffered a big loss due to the fall in the crypto market
Global market regulators may start a joint body next year to improve regulations related to cryptocurrencies. There has been a huge sell-off in the crypto market in the last few days. The price of Bitcoin, the largest cryptocurrency by market capitalization, has lost almost 20 percent this week.
of Reuters Report Ashley Alder, head of the International Organization of Securities Commission (IOSCO), has been quoted as saying that the rise in digital currencies like bitcoin is among the key areas of focus of the authorities, along with areas such as corona and climate change. “If you look at the risk, it is very high and it needs to be discussed at the institutional level,” he said. He cited the lack of cyber security and transparency among the major risks of the crypto segment. Regulators have previously expressed concern over high volatility in cryptocurrencies.
Alder, who also heads the Hong Kong Securities and Exchange Commission, said that there is no global regulator for the crypto market. A decision in this regard can be taken by next year. After the steep fall in the price of the stablecoin TerraUSD, the chairman of the Senate Banking Committee in the US has urged US lawmakers to tighten crypto regulations. Stablecoins are cryptocurrencies that try to link their market price to a reserve asset such as gold or common currencies. These are more commonly used for digital transactions in which virtual assets are converted into real assets.
USD Coin, Tether and Binance USD are some of the popular stablecoins that are pegged to the US dollar. Stablecoin, a rapidly growing version of crypto, has emerged as a major medium of exchange. It is often used to remit funds on behalf of traders. It is easy to exchange major stablecoins for bitcoin or other cryptocurrencies. Other stablecoins have reserves in common assets but TerraUSD It maintains this through an algorithm that controls supply and demand using Luna, another balancing token. TerraUSD, touted as an algorithmic stablecoin, broke its 1:1 link with the dollar on Tuesday.
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