The Federal Reserve Chair and other participants at the Banque de France event recently referred to the Crypto industry as the wild west. The Financial industry policymakers resolved to regulate the market and ensure that Crypto Asset Services Providers (CASPs) uphold ethical standards.
The implementation of resolutions of governance and accountability is now operationalized. CASPs have to abide by strict guidelines or face sanctions. The Securities and Exchange Commission (SEC) is setting the pace by taking legal action against unethical players in the industry.
According to the trending news, the SEC is suing offenders for Crypto crimes. The accused manipulated the market through ‘wash trading’ to create an illusion of demand. It increases confidence in a market, leading to increased bid orders that increase the equilibrium price.
Offenders Are Suspended from Trading
Bitkub, the largest Crypto platform in Thailand, alongside Sakon Srakawee and Anurak Chuachai, risk a joint fine of $636,000. The regulator is banning individuals from running any CASP for twelve months. Additionally, the firm is blocked for six months and will not be able to trade digital assets or their derivatives. The Crypto exchange has been on the wrong side of the law before after its Chief Technology Officer, Samret Wajanasathian, was charged with insider trading following an investigation.
The second offender is Satang Corp. The SEC sanctions came after its director- Mikalai Zahorski, and LLC Fair Expo manipulated the market. The third offender was Zipmex. Its leader-Akilarp, Yimwilai- failed to disclose the asset portfolio of the firm. The Crypto exchange is currently suspended from offering its services to the Crypto community.
About Wash Trading
Financial markets have been grappling with market manipulation, especially in equity markets. Some investors and market insiders have been creating fake demand to turn the market bullish. Also, some of them have been triggering bear trends to buy the dip.
The Crypto market is becoming less volatile following increased regulation. Moreover, the minting of BTC is also slowing down, with 19 million tokens out of 21 million already available. However, the circulating supply in Crypto exchanges remains low at an average of 3 million digital coins changing ownership daily. Therefore, the market is stabilizing with a stable supply of digital tokens. The price mechanism is determined by market forces such as interest rates.
Adoption of Blockchain and Crypto is Rising
In the meantime, the Web 3.0 transition is gathering momentum. Regulators are rushing against time to regulate the industry to protect investors from rogue actors.
In the meantime, Blockchain is making forays in Africa. Polygon commenced a Bootcamp in Kenya that will train attendees on developing decentralized applications on the Polygon sandbox. Xend Finance will sponsor the best talent from the event to curate solutions for the African markets. In addition, South Africa, Nigeria, Ghana, and Rwanda will participate in the 8-week program.