Many organisations in the world have shown which side of cryptocurrency they are. This affects investments, depending on the power the organisation has. A good example is how the federal bank’s decision to increase taxes greatly impacts the cryptocurrency market. Some countries have also contributed to the fall and rise of cryptocurrency. Some countries put measures that push the value up, while others, like China, have banned crypto mining.
United Nations Conference on Trade and Development (UNCTAD)
Another organisation on the list is UNCTAD, abbreviated for the United Nations Conference on Trade and Development. It is part of the United Nations branches and has much power and influence worldwide. The organisation released its report after researching the crypto market. The report had recommendations meant to improve the world’s economy and help guide cryptocurrency growth in the future.
The main concern UNCTAD has about cryptocurrency is regulations. Crypto regulations are rules that all tokens, crypto exchanges, and other investors have to follow to help them improve the market’s security. Some regulations are meant to increase crypto security all over the world. Meanwhile, others are meant to restrict the use of cryptocurrency in illegal ways or to harm others in society. Surprisingly, this is the second multinational organisation with the same concerns and fears.
In this case, UNCTAD’s concerns are that cryptocurrency without regulations will scare away investors from the market. The organisation fears investors will make wrong choices due to a lack of regulations and invest in less volatile coins. Due to this choice, they lose a huge chunk of their investment and suffer losses.
They want the cryptocurrency market regulated similarly to equity markets to help control people and the pricing. According to their report, crypto companies and exchanges are taking advantage of the conditions in the market. This is a major cause of concern as many people have fallen victim to companies losing their value overnight. This year alone, almost ten companies involved with cryptocurrency have lost their value or completely gone under.
UNCTAD also made some proposals or ideas on mitigating the risks people face. To begin with, countries should not allow financial institutions’ involvement in offering cryptocurrency services to the nation. This will help to reduce the number of organisations that take advantage of people’s money. Secondly, crypto exchanges and wallets should not market their services on social media platforms. They might be offering false hopes to investors and guiding them to ruin.