Some countries want to restrict bitcoin and cryptocurrencies

Some countries want to restrict bitcoin and cryptocurrencies

More and more countries want to restrict trading in cryptocurrencies because of the risks.

On the afternoon of December 26th, Bitcoin price sometimes fell from $ 50,000 to almost 2% in the past 24 hours. For the whole week, however, that digital currency was still up more than 5%. Similarly, many other cryptocurrencies have also fallen slightly in the past 24 hours, such as Ethereum, which fell 0.26% to 4.04.1 USD; Binance drops 0.59% to 542.81 USD; Tether (USDT) lost 0.12% to 0.9996 U.S. dollar; XPR lost 1.11% to 0.9175 U.S. dollar; Dogecoin is down 0.51% to 0.1889 U.S. dollar…

The current Bitcoin is still down nearly 10% from late November and compared to the high of nearly 70,000 USD in In the first half of November, about 20% has evaporated. The cryptocurrency market has been quite active since the beginning of the year and has troubled many financial institutions due to a number of risks that may arise.

According to the International Monetary Fund (IMF) cited by CNBC, the total size of the global cryptocurrency market has passed the 2,000 mark. Billion USD in September of this year, an increase of ten times compared to the beginning of 2020. There are many individual investors and financial institutions participating in cryptocurrency transactions while “the practical experience in operations and management is lacking. Value and risk”. The IMF therefore sees no small risk for consumers and stresses that there is not yet “sufficient information transparency and supervision” in this area.

In addition, the IMF believes that cryptocurrencies create data gaps and “could open undesirable doors for money laundering and terrorist financing”.

According to the IMF, regulators in each country must act to establish common global prudential rules to strengthen cross-border surveillance. In addition, the digital currency is a very new field, so countries must also act together to advance data standardization.

Not only the IMF, other financial institutions have called for more measures to make digital money a safer investment channel. The British Financial Conduct Authority (FCA) previously warned of the risks involved in investing in cryptocurrencies. Data released by the FCA in June shows that around 2.3 million people in the UK own virtual currency. 14% of them use credit cards to purchase virtual currency and 12% believe they are protected from FCA fraud. However, the FCA said there is currently no regulation to protect investors. Or this week, Andrey Mikhaylishin, head of crypto payments startup Joys, told Forbes Russia that the Russian central bank is considering several ways to ban cryptocurrencies. Potentially prohibitive restrictions include blocking debit cards on exchanges or wallets with a commodity code (MCC). Similarly, according to information from Bloomberg, the Thai central bank is expected to issue a consultation document in January 2022 to seek consensus among people and authorities on three “red lines” for individuals and organizations working in the digital currency space are engaged in green finance and related fields. This was announced by the governor of the Thai central bank, Sethaput Suthiwartnarueput, in an interview on December 13th. Mr Sethaput said there is room for digital assets as an investment, but the high volatility of cryptocurrencies poses risks to the financial system …