"Global rules are needed to regulate international crypto firms like Binance and 'keep markets clean'," says UK's Financial Conduct Authority (FCA).
While crypto firms are usually unregulated around the world, it is a protocol to show that they have proper controls to counter money laundering.
In 2021, the FCA interdicted Binance, the world's largest crypto exchange from undertaking any regulated activity in the UK as it was "not capable of being effectively supervised". Meanwhile, regulators in Spain, Italy and France have given the green light for Binance's operations in their national markets for 2022.
FCA Chief Executive Nikhil Rathi told the Peterson Institute for International Economics:
"Global baseline standards are important. With widespread, cross-border activities like money laundering, common regulatory standards and information sharing cross-border is essential to the clean markets we desire."
The FCA has also commented that they would "always be hawkish around consumer protection" and have long warned investors that they could potentially lose all of their money. Unfortunately, this has become a reality with the recent crash in the value of Bitcoin.
A global regulatory body, the Financial Stability Board, said that it would soon draft recommendations to G20 countries in October 2022 for the regulation of crypto assets.
(Source: The Star)
With the uncertainties and risks associated with investments such as cryptocurrency, it is important for us to proceed with caution before throwing in our entire life savings just because people around us have successfully reaped gains from the market.
Consulting a financial advisory firm or an investment analysis firm would be recommended to prevent unprecedented losses.
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