Will Crypto Scandals Stop?

Cryptocurrency remains at the heart of the financial scandal in recent days to the point of
wonder why.

First, the cryptocurrency market is very tempting and new. This
novelty makes it both more interesting for buyers and for people with bad
intended. Even the most sophisticated financial environment like wall street lets
bully crooks. A poorly regulated market like that of cryptocurrency is tempting
anyone who wants to earn money quickly and easily.

Due to its decentralized nature, crypto-currencies escape all the laws of
regulation by different governments. In many European countries, even
more developed, taxes affect those who exchange their cryptocurrency in Euro
only. Other than that, no safeguards. No system protection. SO
anyone who decides to buy a cryptocurrency is therefore quite free to do so
as he wishes, as he wishes where he wishes to do it, but the person is also at
her own risk and peril, she is left to herself. It will have no recourse in the event of
fraud, no assistance intervention in case of disappearance of his money. This lack of
regulation does not only affect investors. It concerns all stakeholders,
actors and workers in this cryptocurrency sector.

Many crypto projects are often set up in a hurry. Already anyone can
launch a cryptocurrency with a bit of trick and such a way to launch a project
allows opportunities for great scams, which quite often even exasperates some
crypto fans, to the point of starting to jump ship. Also the fact that the creators
are mostly anonymous and most often end up disappearing in the wild
with millions, even billions of dollars, confirms the random nature of these
crypto projects and of course the false side of complicated promises, or even
impossible to hold. On the other hand, some projects are serious, it must be recognized, but they
can be very vulnerable at times. We could cite the example of the stable coin
TerraUSD, based on the US dollar but which finally experienced a historic fall
last year, causing doubt, mistrust among many investors and the fall
of the whole market.

Exchanges are also not immune. Scandals extend to the level of
exchange services. There are over 6000 cryptocurrencies. And above these few
cryptos are companies like Binance or Uniswap that offer crypto services.
crypto broker with an electronic wallet. These intermediaries allow
users to exchange funds for cryptocurrencies or cryptocurrencies
against them. However, these exchanges do not mean that everything takes place outside the
market, that there is no impact on the market! No way.

The FTX case proves this very well. FTX is one of the biggest crypto platforms
and which also had its own crypto-currency. This platform went bankrupt
of several billion dollars following, it is said, the embezzlement due to its founder
Sam Bankman-Fried, known as SBF.

Such a bankruptcy and for the same reasons is not something uncommon. But
the interdependence between the different cryptos and the exchange platform because of the
enormous damage which caused an unprecedented fall in the crypto market, the
Bitcoin and Ethereum prices. These are the two main crypto ecosystems. Their
fall affects the market hard, it can cause the disappearance of tokens less
important and that is what happened with the FTX case.

This mess calls for the preparation of a law to regulate the crypto market. In
France some parliamentarians have looked into the case. They got together to talk
on the need for a new law that could toughen access to crypto. This law aims to
require an application for PSA approval (digital asset service provider), with
mandatory registration with the AMF (Financial Markets Authority). And for
properly control the sector, approval will have to be done on a case-by-case basis.

French parliamentarians were alerted by the bankruptcy of FTX. They had a good
intuition. They seek to ban French companies from taking advantage of the legal loophole
what the crypto market offers. If the law seems beneficial, it must be adapted to others
countries of the European Union to be effective.

Recent events that rocked the cryptocurrency markets have led to believe
a moment to their disappearance. Despite the volatility of crypto and the impressive falls
of the Terra and FTX ecosystem, Bitcoin and Ethereum were able to hold and resume
their lessons quickly. Those who wish their end can wait a little longer.
Some argue that when technologies accessible to the general public see the
day in the digital world, we will witness an exponential development of the crypto market
and certainly to its stabilization.

The repeated financial scandals in recent months or years will not last. THE
markets have a strong adaptive capacity to correct flaws in their system. AT
each exploitation of its loopholes by crooks, the markets recover and correct
Errors. We also find that crypto market participants learn quickly from
their mistakes and a new economic model is developing before us.