Cryptocurrency market continues to be active, raising risks

Money trading company digital Gemini (located in the US) conducted a survey from November 2021 – February 2022 for nearly 30,000 people in 20 countries. Survey shows 2021 to be a boom year for electronic moneywith nearly 50% of crypto holders in the US, Latin America, and Asia-Pacific having purchased digital assets for the first time in 2021.

Brazil and Indonesia lead the world in crypto use, with 41% of survey respondents in these two countries reporting owning crypto, the percentage in the US is 20% while in the UK it is 18 %. The survey also found that 79% of crypto holders last year said they chose digital assets because of their long-term investment potential.

Those who don’t currently own crypto and live in countries that see their local currency fall against the USD, leave the door open 5 times more likely to buy crypto as an anti-inflation measure. increase.

Digital currency has been volatile in 2021. In November 2021, the value of bitcoin rose to an all-time high, to more than 68,000 USD, bringing the total value of the global cryptocurrency market to the total value of the global cryptocurrency market. $3 trillion. Currently, the bitcoin price is around $34,000 – $44,000.

Risk management from cryptocurrencies

Currently, not only cryptocurrencies are becoming more and more popular, but also more and more popular types of assets purchased with cryptocurrencies such as NFT digital assets, total transaction value in in 2021 will reach 17.6 billion USD.

The use of cryptocurrencies, crypto-assets and technology has shown promising potential and also comes with great risks. The general trend of many countries is therefore to promote the development and application of these technologies, but priority must be given to consumer protection and the stability of the financial system.

Malaysian police last year destroyed more than 1,000 bitcoin miners, arresting eight people in a manhunt. This group is accused of stealing electricity to run bitcoin miners. This action is considered to be harmful to public property and people’s life, because there is a risk of power outage in the area. Electricity damage was estimated at $2 million.

Earlier this year, the International Monetary Fund (IMF) called on El Salvador to change its policy and stop using bitcoin as a legal currency. The IMF emphasized that the use of bitcoin and the issuance of bonds of this digital currency will bring great risks to financial integrity and stability as well as to protect customers.

Digital currencies have grown rapidly in recent years, but the lack of strict regulatory regulations is a vulnerability that creates risks.

Ms. Maxine Waters – Chairwoman of the Financial Services Committee of the US House of Representatives: “There is no single or universal regulatory framework for the cryptocurrency market, leading to investments in digital assets. vulnerable to fraud, manipulation or abuse”.

In fact, many digital currency-related crimes have been busted. Turkey last year issued arrest warrants for 78 people in connection with the largest cryptocurrency scam in the country’s history. The investigation was conducted by the police after the founder of the Thodex digital currency trading platform, Fatih Ozer, suspended trading and went abroad on April 20, 2021. Ozer is said to have disappeared with 2 billion USD of crypto assets collected from more than 390 thousand investors, the monthly trading volume of this platform is about 12 billion USD.

After this incident, the President of Turkey signed a decree, adding digital currency trading platforms to the list of companies that must comply with regulations on anti-money laundering and terrorist financing. The central bank of Turkey has also banned the use of digital currencies for payments on the grounds that these are risky transactions.

Members of the European Parliament last month agreed on draft rules for the supervision, consumer protection and sustainability of digital assets, including cryptocurrencies. digital.

Earlier this year, Thailand planned to ban digital asset operators from facilitating the use of cryptocurrencies as a means of payment for goods and services. The aim is to limit risks to digital currency payment activities, including stabilizing financial markets and the overall economic system.

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