Taiwan’s Financial Supervisory Commission (FSC) issued a statement on Thursday regarding the state of the crypto market with the collapse of FTX. The Taiwanese financial regulator explained the risks of investing in cryptos after this unfortunate event.
Taiwan regulator is sounding the alarm
The failed exchange FTX was one of the biggest crypto companies globally. But it fell apart spectacularly after a series of decisions by its CEO Sam Bankman-Fried. It was a real blow to millions of retail and institutional investors around the world. Currently, the exchange, which ceased all activity, is under investigation in several countries such as the United States and Taiwan. Indeed, he is suspected of having committed offences: securities violations.
That said, analysis done so far after the collapse of FTX has revealed that hundreds of thousands of Taiwanese have invested in the fallen exchange. In this context, the Financial Supervisory Commission of Taiwan asked to investors of beware of the crypto sector. She recalled that the sector is characterized by two elements. “Lack of transparency and price volatility”. The commission indicated that this industry is thus linked to extremely high risks.
According shethe Taiwanese must stay away from investments in risky financial products available on virtual asset platforms like FTX. She clarified that she does not intend to stop closely monitoring everything related to FTX and cryptos. It also intends to examine how the courts of other countries are reacting to the situation.
The goal of crypto players: turn the market around
The FSC warning comes after Taiwanese victims tried to create a self-rescue group online. The objective of this group is to find a solution to deal with the consequences of the collapse of the crypto market.
You should know that the majority of crypto players are currently studying the possibilities of recovery in the sector. The Binance exchange, for example, account set up a fund for the revival of the crypto industry.
Taiwanese Securities and Exchange Law only recognizes Securities Token Offerings (STOs). Transactions related to these are also subject to the regulation and supervision of the Taiwanese government. Investment in any other type of virtual currencies or derivatives thereof is not permitted by the Taiwan FSC.
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