Regulatory authorities once more raised concerns about the element of risk involved in the cryptocurrency market. Most recently, the regulator pinpointed Binance and Tether as the riskiest blockchain exchnages. During the American Fintech Council’s 2021 Policy Summit, Michael J. Hsu, the Comptroller of the Currency passed the remarks and said that universal regulations are needed for the crypto firms.
He also said that large crypto exchnages with a greater volume of trade need to embrace consolidation supervision. Moreover, the head of federal institutes and state banks are responsible for developing policies which are easily agreeable and comprehensive enough to ensure risk management.
The approaches must be effective to safely lure these blockchain exchnages into the bank regulatory perimeter. This would further create the differentiation within the cryptocurrency industry by separating secure and sound crypto exchnages from those who are partially regulated and have a history of violating the law.
It is worthwhile mentioning that nowadays the U.S regulatory authorities are supporting rapid decentralization of cryptocurrency. Some of the U.S states have officially passed the regulations to ensure that cryptocurrency companies must not have regulatory interruptions. As the result, U.S has emerged as the hub of cryptocurrency with the highest hash rate and trade volume of digital tokens.
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However, on the other hand some of the regulatory representatives have over the years raise their voices against the crypto exchnages such as Binance and Tether. Regulators have once more raise their concerns over Binance and Tether as these two crypto exchnages have a history of violating the regulations and facing lawsuits.
The office of the Comptroller of the Currency is responsible for regulating and overseeing the federally chartered banks which operate in the United States. Hsu during the council meeting also said that this vast expansion and retail nature of the cryptocurrency market is questionable and can’t remain untouchable.
Hsu and Saul Omarova, the staunch critics of the crypto, of them have said on multiple occasions that in the cryptocurrency marketplace, the rapid growth and total market trade value has also given birth to the same growth level of scams and consumer complaints. However, due to their financial power, these cryptocurrency companies and influential people have managed to put the other side of the picture under the carpet. Over the years crypto critics have argued that the power of money has effectively blinded the people and crowded their judgment.
Crypto moves at rapid pace and with the launch of every new multimillion crypto project people ignore the other side of the picture. It is important for people to have a look at the both sides of the crypto-coin to make a better judgment.