Cryptocurrencies updates
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Gary Gensler, the top US securities watchdog, pulled no punches in a recent speech about cryptocurrencies. Complaining that the sector had become “the Wild West”, he asked Congress for new regulatory powers. This week, news of a daring heist underscored his point. Poly Network, a decentralised financial network, said that hackers had exploited vulnerabilities in its systems to abscond with about $600m in digital currencies.
Up to now, regulators have taken a hands-off approach to cryptocurrencies, generally relying on the principle of “buyer beware”. The US Securities and Exchange Commission said in 2019 that bitcoin is not a security, and the UK Financial Conduct Authority does not regulate most cryptoassets directly, only derivatives based on them.
The result has been rapid growth and flourishing innovation. That is largely to the good, despite the extreme volatility. A recent Bank for International Settlements paper concluded that most crypto buyers…
