More than a decade after its creation, bitcoin and the cryptocurrency industry in general are still in the development phase of the “Wild West”.
Last month, US Senator Elizabeth Warren used this cliché to describe cryptocurrency trading, following an assembly of the Senate Banking Committee to talk about virtual currencies.
While there are a number of well-established exchanges that allow consumers to securely exchange fiat currencies for cryptocurrencies (Coinbase has even become a publicly traded company before this year), a new generation of platforms is emerging that some experts may pose immense risk.
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Bitcoin SuperSplit and Immediate Bitcoin are components of this new trend of sites promising massive returns, the so-called bitcoin contracts for difference (CFDs), which claim to be AI-powered systems that use algorithms to guess the direction of the market.
A deposit for singles of $250 can generate up to $750 on a singles day, according to a boast on Bitcoin’s website, the lack of oversight by regulators means little is being done to protect users. several steps behind, with CFDs capable of working in more than 160 countries around the world.
One of the few places where they are banned is the United States, where cryptocurrency experts have asked the government to identify express for crypto to combat market abuse.
“Cryptocurrencies are characterized lately as the Wild West of money markets, even though U. S. regulators have tried to rein in the sector, their attempts have been disappointing,” said Carol Alexander, a professor of finance at the University of Sussex.
“To be truly effective, there will have to be regulation for all crypto players so that there is no uncertainty about who will initiate an action and how they will address the worst market abuse. If U. S. regulators are in the u. s. U. S. They don’t take this” step to show that they take supervision of a specific sector seriously, possibly spreading about the threat of elegance movements through investors who argue that they have taken inadequate steps to restrict the threat of loss due to negligence. . “
Other emerging trends come with cryptocasinos, which allow users to play bitcoin, Ethereum (ether) and other cryptocurrencies in relative anonymity.
Even old-time video game company Atari has been drawn to the prospect of lucrative profits, like a crypto casino prior to this year. Located in a virtual world called Vegas City, Atari expects up to $400 million in betting over the next two years. as players opt for “nostalgic games” like Pac-Man and Space Invaders.
While Atari’s efforts seem sincere, experts say other copy corporations can undermine the entire industry unless a robust regulatory framework is applied to scam sites without stifle innovation in the space.
“I think the U. S. will have to take the lead on this issue, they are the only regulators who have shown the courage to fight. The UK has just manipulated the edges with some adjustments to the tax rules, but has shown very little interest. “largely because it doesn’t have the same exposure to crypto from personal investors and retail banks,” professor Alexander said.
“Neither the UK nor European regulators have begun to familiarize themselves with the regulation of cryptography. . . America therefore has a duty to get it right and show the way forward for others.
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