Regulator Advises Being More Proactive in Protecting Crypto Investors

Switzerland’s top market watchdog has called on Wednesday for regulators to take more and proper actions to protect cryptocurrency traders from the risks involved in the sphere.

According to Reuters, regulators should protect consumers from ‘abuse in the freewheeling sector.’ “There’s much more that can be done. It would seem to me that a lot of trading in digital assets looks like the US stock market in 1928, where all kinds of abuse, pump and dump, are now in fact frequently common,” Urban Angehrn, CEO of the Swiss Financial Market Supervisory Authority (FINMA), commented during a conference in Zurich.

He added: “Let’s also think about the potential of technology to make it easy to deal with the large amounts of data and to protect consumers from trading on abusive markets.”

Warnings from Other Regulators

Regulators have been actively pushing for stricter rules in the crypto markets. The US watchdogs have warned several times about the possibility of market manipulation.

The UK’s  Financial Conduct Authority (FCA 
Financial Conduct Authority (FCA)

The Financial Conduct Authority (FCA) is the largest financial regulator for all financial markets in the United Kingdom (UK).The UK regulator is responsible for the conduct of firms authorized under the Financial Services and Markets Act 2000. Moreover, the FCA is also responsible for the regulation of behavior in retail and wholesale financial markets, supervision of the trading infrastructure that supports those markets, and the prudential regulation of firms not regulated by the PRA. Its role includes protecting consumers, keeping the industry stable, and promoting healthy competition between financial service providers. The FCA publishes and updates a guide handbook that sets out the rules, guidance, and provisions made by the FCA under its powers. The FCA has supervisory authorities overall financial services firms conducting regulated activities, such as offering loans, car financing deals, any consumer credit. Investment firms carrying on certain activities concerning financial instruments such as shares and bonds, the Markets in Financial Instruments Directive (MiFID) requires you to be authorized. Businesses are providing pre-paid cards or other such financial…