Maintain a high-pressure situation against the chaos of the "currency circle"
Li Hualin
The "currency circle" crisis continues to ferment.
Following the explosion of FTX, a well-known virtual currency trading platform, recently, BlockFi, a virtual currency lending platform, filed for bankruptcy.
Affected by this news, Bitcoin fell sharply, falling to around US$16,000 at one point, and has fallen by more than 70% from its historical high of US$69,000 in November 2021.
A trading platform went bankrupt before, and a loan company went bankrupt later. Now, the risk of virtual currency has been transmitted to every link in the "currency circle" industry chain.
As the world's major economies tighten monetary policies and global high inflation continues, the risk of financial asset price fluctuations increases, the demand for capital hedging increases, and virtual currency prices fluctuate sharply.
Market panic spread, and all links in the virtual currency industry chain were affected.
And the turmoil in every link of the chain will drive the value of the virtual currency to further drop.
In such a vicious circle, countless funds were wiped out.
With the collapse of market confidence, chaos in the "currency circle" has emerged one after another.
In addition to facing investment losses caused by the "roller coaster" of virtual currency prices, investors may also encounter "thunderstorms" and "runaways" on trading platforms at any time, freezing of funds, and even personal information being stolen in violation of regulations, thus falling into money laundering, fraud, etc. Legal Risk.
Maintaining a high-pressure situation on the "currency circle" and better protecting the interests of investors should be the next key work.
my country's regulatory authorities have long issued repeated orders, explicitly prohibiting virtual currency speculation and transactions, and requiring financial institutions not to provide related financial services. However, in practice, some virtual currency trading platforms have moved overseas, evading domestic supervision by changing vests or registering overseas companies. , continue to provide domestic investors with over-the-counter transactions.
In this regard, in the future, the regulatory authorities should strengthen penetrating supervision and cross-border supervision, effectively implement the real-name system, carry out continuous investigations on key institutions and key personnel, and not give any opportunities for illegal and criminal activities.
Faced with the "slump" of virtual currency prices, many investors have chosen to withdraw, and some investors still want to buy the bottom and still dream of "getting rich overnight".
In this regard, relevant departments should continue to strengthen investor education and remind investors that participation in virtual currency transactions is not protected by law and there are serious legal risks.
Investors themselves should remain rational, strengthen their awareness of risk prevention, and consciously stay away from various illegal financial activities related to virtual currencies.
"What is speculated is speculative, and what is lost is real money." Virtual currency is not a legal currency, has no real value, and lacks credit support. Related transactions are purely speculative.
Since the beginning of this year, the value of many virtual currencies has returned to zero. In the future, similar situations will only become more and more common, and even the most gorgeous bubbles will eventually burst.
(Economic Daily)