Why are clear rules important in managing the crypto boom to protect investors?

[klassicdoll]

With the rise of cryptocurrencies, the world of finance is fast-changing. With more people investing in it nowadays, fraud has increased as well. In today's world, rules that cover cryptocurrencies vary from country to country, which causes confusion and makes potential investors hypervigilant. To deal with the issue, regulators may mandate risk disclosure and license requirements for exchanges. Achieving a balance between consumer safety and innovation is crucial for the bitcoin business to flourish.

Thoughts on this?

 

[Suba]

Clear rules made by governments from various countries, to protect consumers especially in crypto exchanges must have a license/registered to operate in a region or country, so that it will reduce money laundering, reveal user identities through KYC and AML. But for the crypto boom the government cannot prevent or control.

 

[magnus2022]

I don't think there is any such rules or policies to protect investors from losing their assets. That's make cryptocurrency very unique and different from other markets except you can devise a means to hedge your investment

 

[Webster]

Clear rules made by governments from various countries, to protect consumers especially in crypto exchanges must have a license/registered to operate in a region or country, so that it will reduce money laundering, reveal user identities through KYC and AML. But for the crypto boom the government cannot prevent or control.

Agreed; you need clear sensible rules in order to (a) broaden crypto's acceptance in financial circles and (b) lessen allegations of criminal nefariousness often seen in the crypto sphere.