CFTC Gathering Hears Repeated Calls for Crypto Self-Regulation
Satoshi Nakamoto might not be a money launder in Russia. The concept was discussed during a meeting held by the CFTC officials on Friday.
Meeting on How to Safeguard Digital Assets
During the long hour session, the IT experts also discussed about the appropriate ways of safeguarding the digital assets. The measure was vital for the purposes of ensuring that the investors do not lose their assets. Another issue of discussion is how the regulatory body can assist to eliminate this problem.
The meeting was opened Brian Quintenz who is a CFTC commissioner. He began by a summary of the subcommittee which was formed several months ago. Brian emphasized on the role of the market players in the industry. According to him, the can assist in improving market’s safety and integrity.
Andre McGregor observed that the industry has lost billions of bitcoin in the past. The digital currency was lost when executing crypto exchange transactions. He suggested that most customers blindly believe hot wallets. However, some investors have taken a step to safeguard their holdings by embracing hardware wallets.
He also talked about hacks that have made corporations to lose colossal sums of money. For instance, Zaif lost $ 60 million to hackers.
Richard Gorelick recommended that smart regulation can assist in protecting the property of investors. The expert advised the industry to create better guidelines to safeguard stockholders. The expert is the head of marketing department at DRW holdings.
This is just one solution among the many that can assist to safeguard investor’s wealth. The subcommittee unanimously agreed that there was a need to fill these gaps. This is attainable through joint efforts from various stakeholders.
Role of Regulatory Institutions in Protecting Digital Transactions
The regulatory institution should develop better structures to ensure that digital transactions are safe. The measure will enhance accountability and integrity in the industry. Plans are underway to build these organizations to regulate the market. Currently, the industry is experiencing huge loses which might scare shareholders.
Alexander Stein observed that there was a need to improve exchange security. The step will help in safeguarding investors from fraudsters.
Achilles heel also lamented that the world of exchanges is not well regulated. This makes bitcoin transactions unsafe within the US jurisdiction. Lacks of better rules also make it easier to the hacks to steal from investors.
There is a need to make an effort to eliminate fraud in digital transactions. This is the only way that the corporation can win back the trust of the shareholders. Currently, most of them are skeptical and undecided on the issue of investing in these markets.