🏅7 Reasons to Ban Crypt Exchange Exchanges🏅
🍀 The professor of the Chinese People's University offered his interpretation of why regulators shut down the Chinese crypto-exchange exchanges. In his opinion, there are 7 main reasons for this.
🍀 Professor Yang Dong is Deputy Dean of the Faculty of Law of the Chinese People's University and director of the Fintech Center and Internet Security. He spoke at many seminars attended by regulators such as the Bank of China and the China Securities Regulatory Commission, as well as academic researchers, think tanks and lawyers.
🍀 In an interview with CCTV, he described a number of reasons why regulators shut down the Chinese crypto-exchange exchanges.
🔥Lack of licensing🔥
🍀 The first is the lack of licensing. He believes that financial institutions are required to obtain licenses to conduct their operations from such bodies as the Banking Regulatory Commission of China and the Insurance Regulatory Commission (CIRC). At the same time, he noted that:
🍀 Currently, the Chinese crypto-exchange markets do not have a corresponding legal license, which automatically releases them from liability in the current regulatory policy. And this, in fact, is a huge business risk.
The Nature of Bitcoin
🍀 The second reason concerns the nature of bitcoin itself. The professor believes that
🍀 The mechanism for limiting the amount of money due to a particular program is controversial, since a new cryptography system may appear, the existing algorithm can also be forged, as a result of which the release of crypto currency may increase.
According to the professor, digital currencies lack 'explicit value'.
🔥... since there is no economic basis for estimating supply and demand for bitcoins and internal costs is also absent, the speculative atmosphere of the market leads to sharp price fluctuations.
Moreover, he said that the crypto-currencies 'do not depend on the driving force of inflation and the difference in exchange rates, as well as on other factors.'🔥
🔥Money Laundering Schemes and Financial Pyramids🔥
🍀 The third reason, according to the professor is that the digital currency easily allows you to deal with fraud and money laundering. According to him:
🍀 Since the virtual currency has no borders, cross-border payments in virtual currency can avoid currency control. Countries and economies that are not very open to capital will be interested in protecting themselves against such anonymous transactions.
🍀 The problems associated with the manipulation of the market and security
🍀 The fifth reason for Professor Young concerns the problem of market manipulation. Anyone who invests tens of millions of dollars can easily manipulate the price. And ordinary investors, who have less access to information and are not in such a favorable position - will incur losses.
🍀 The sixth reason is related to security risks. If the security system is not strong enough, hackers can access crypto-currency assets, which will lead to irreparable damage.
🔥Darknet🔥
🍀 The last reason for the professor is that bitcoin was used in darknet markets, which are not regulated:
🍀 Operations in the darknet are not protected and do not fight money laundering, they do not comply with KYC standards. The government can not effectively control the darknet.
🤗 source: cryptocurrency.tech 🤗