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The Financial Sector Conduct Authority (FSCA) is not impressed by the volatility on display from cryptocurrencies like Bitcoin and Ethereum and the sea of alt-coins, non-fungible tokens (NFTs) and financial platforms that have sprouted up on the back of decentralised finance (DeFi) technologies. They are unhappy about the complexity of these financial solutions; the fact that most operators in the sector are unregulated; and the prospect of naïve investors losing their proverbial shirts by chasing the insane and irresponsible returns that many crypto opportunities promise.
The cryptocurrency market is notorious for its volatility, with investors in some instances experiencing gains and losses all within the same day. The question on many investors’ minds is what drives the price and volatility of cryptocurrencies.
Since the beginning of 2021, Kaspersky has detected more than 1,500 fraudulent global resources aimed at potential crypto investors or users who are interested in cryptocurrency mining. During this period, the company also prevented more than 70,000 user attempts globally, to visit such sites¹.
What do you believe will be the biggest challenge when the COFI framework is finally implemented?