Taiwanese investors be warned!

Taiwan’s Financial Supervisory Commission (FSC) issued a statement on Thursday regarding the state of the crypto market with the fall of FTX. The Taiwanese financial regulator explained the risks of investing in cryptos after this unfortunate event.

Taiwan’s regulator is sounding the alarm

The failed exchange FTX was one of the biggest crypto companies in the world. But it spectacularly disintegrated after a series of decisions by its CEO Sam Bankman-Fried. It was a real blow to millions of retail and institutional investors around the world. Currently, the exchange, which ceased all activity, is under investigation in several countries such as the United States and Taiwan. Indeed, he is suspected of having committed criminal offences: securities violations.

That said, analysis done so far following the FTX crash has revealed that hundreds of thousands of Taiwanese have invested in the fallen exchange. In this context, the Financial Supervisory Commission of Taiwan asked for investors e beware of the crypto sector. She recalled that the sector is characterized by two elements. “Lack of transparency and price volatility”. The Commission indicated that this industry is associated with extremely high risks.

The regulator’s warning was broadcast by the local press

According to itTaiwanese should stay away from investments in risky financial products available on virtual asset platforms such as FTX. She clarified that she does not intend to stop closely monitoring everything related to FTX and cryptocurrencies. It also aims to examine how courts in other countries are responding to the situation.

The goal of crypto players: turn the market

The FSC’s warning comes after Taiwanese victims tried to create one online self-help group. The objective of this group is to find a solution to deal with the consequences of the crypto market collapse.

You should know that most of the crypto players are currently studying the recovery possibilities in the sector. Binance exchange, for example, account to create a fund for reviving the crypto industry.

Taiwanese Securities and Exchange Law recognizes only Securities Token Offerings (STOs). Actions related to these are moreover subject to regulations and surveillance of the Taiwanese government. Investment in any other type of virtual currency or their derivatives is not permitted by Taiwan FSC.

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Avatar Luc Jose Adjinacou
Luc Jose Adjinacou

No less than it dampened my enthusiasm, an unsuccessful investment in a cryptocurrency in 2017 only increased my enthusiasm. Therefore I decided to study and understand the blockchain and its many uses and transmit with my pen information about this ecosystem.

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