There are many concerns surrounding cryptocurrencies, leading to calls for tighter regulation of them. some solutions are at hand
Illustration by Nilanjan Daso
Worry: Investors can burn their fingers in crypto markets, as they are often highly volatile.
Solution: Exchanges must build safeguards to prevent gullible investors from losing money. Displaying crypto prices for the whole year helps to understand volatility and make informed decisions
Worry: The boom in hype and advertising is exaggerated return on crypto investment
Solution: Government may ask the Advertising Standards Council of India to keep a close watch on such advertisements and flag them if required
Worry: Indian crypto exchanges have been the victim of hackers from time to time, who break into digital wallets and get away with cryptocurrencies
Solution: Investors need to educate themselves on crypto as an asset class like when they started investing in equity markets
Worry: Terrorists, money launderers and other anti-social elements abusing the crypto ecosystem
Solution: The government should devise appropriate security systems and put in place adequate legal and institutional arrangements and safeguards to safeguard national security
Click here for IndiaToday.in’s Full coverage of the coronavirus pandemic.
,