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Laxman Pai, Opalesque Asia: A new report from the Bank of International Settlements (BIS) urges regulators to keep a close eye on the emerging Cryptoassets industry while acknowledging that it's currently not a risk to the global financial system.
The report pointed out: "While cryptoassets do not, at this point, pose a global financial stability risk, it is important to remain vigilant, monitor developments and respond to potential threats."
The study around the movement of several cryptocurrencies' prices and co-related it with regulatory actions by respective central banks revealed that bitcoin markets are swayed by news events related to regulation.
"While cryptocurrencies are often thought to operate out of the reach of national regulation, in fact their valuations, transaction volumes and user bases react substantially to news about regulatory actions," said the report.
Cryptocurrencies are often touted for their decentralized nature which allows them to break free from the shackles of domestic and international regulations, however, these guidelines still have an effect on them.
While this industry is attempting to work outside of the realm of regulations, news regarding their national regulations is one of the main points to affect its price. Because of this, positive regulation news turn into market gains while the negative ones do not, it explained.
News that moves
BIS Bitcoin report found that cryptocurrency prices have s...................... To view our full article Click here
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