Taiwan’s Financial Supervision Commission (FSC) released a statement on Thursday regarding the state of the cryptocurrency market as FTX collapsed. The Taiwanese financial regulator explained the risks of investing in cryptocurrencies after this unfortunate event.
Taiwan’s regulator is sounding the alarm
The failed exchange FTX was one of the largest cryptocurrency companies globally. But it collapsed in spectacular fashion after a series of decisions by its CEO Sam Bankman-Fried. It was a major blow to millions of retail and institutional investors around the world. Currently the exchange, which has ceased all activity, is under investigation in several countries such as the United States and Taiwan. In fact, he’s suspected of committing crimes: securities violations.
That said, the analysis done so far after the FTX crash has revealed that hundreds of thousands of Taiwanese have invested in the fallen exchange. In this context, the Taiwan Financial Supervision Commission has asked investors to do so attention to the cryptocurrency sector. Remember that the sector is characterized by two elements. “Lack of transparency and price volatility”. The commission indicated that this sector is therefore linked to extremely high risks.
According to Shethe Taiwanese must stay away from investing in risky financial products available on virtual asset platforms such as FTX. He made it clear that he does not intend to stop closely monitoring all things FTX and cryptocurrencies. He also intends to examine how courts in other countries are reacting to the situation.
The goal of cryptocurrency players: to turn the market around
The FSC warning comes after Taiwanese victims attempted to create a online self-help group. The goal of this group is to find a solution to deal with the consequences of the collapse of the cryptocurrency market.
You should know that most of the crypto players are currently studying the possibilities of recovery of the sector. The Binance exchange, for example, account set up a fund for the revival of the cryptocurrency industry.
The Taiwanese Securities and Exchange Law only recognizes Securities Token Offerings (STOs). Transactions relating to these are also subject to regulation and supervision by the Taiwanese government. Investment in any other type of virtual currency or related derivatives is not permitted by Taiwan’s FSC.
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Far from dampening my enthusiasm, a failed investment in a cryptocurrency in 2017 only increased my enthusiasm. I therefore decided to study and understand the blockchain and its multiple uses and to convey information related to this ecosystem with my pen.