Scope, a rating agency, pointed out that the cryptocurrency market is quite small with only 250 billion dollars, but they are still a danger to the traditional financial system. Financial institutions are not immune to the risks of the cryptographic system, especially if users demand services in that area.

According to the firm, the biggest fear in the crypto system is caused by the absence of “regulation and supervision of crypto assets”, so that they may gradually flow into traditional financial markets, contaminating them with new risks.

The company further maintains that the crypto market is made up mostly of small investors, and many of them execute “predominantly speculative or hedging operations” and are unaware of the true nature of cryptocurrencies or the underlying risks.

While institutional investors, especially hedge funds and investment funds such as ETFs focused on cryptocurrencies, are becoming more numerous.

The agency highlights: “This inherently jeopardizes financial stability. Not only because the funds invest other people’s money, but also because of the intense use of leverage on a much larger scale.”

That is why financial regulators are paying more and more attention to the “threat posed by the growing interconnection of cryptocurrency markets with traditional financial markets.”

M. Rodríguez

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Source: themoneypost.io

La entrada Financial entities are not immune to the risks of crypto apareció primero en Bitfinance.

Global ATM installations fell steadily so far in 2022, registering the lowest number in May with 205 new equipment, which is equivalent to a drop of around 89.75% in the month, a figure that was not seen since 2019. However, so far in June there has been a slight recovery.

One of the factors that impacted the slowdown in ATM installations globally highlights “China’s imposition of a blanket on cryptocurrency trading and mining.”

According to the Coin ATM Radar measurement scale, which is based on the data collected in the last two months, the daily average of ATM installations in the world is equivalent to 23 pieces of equipment and there are currently “38,000 operating ATMs installed.” across the globe.

These equipments fulfill a “crucial” function for the economy of the cryptographic system because it facilitates the exchange of fiduciary currencies to digital currencies and vice versa for both users and investors.

 2021 year of maximum growth for ATMs

Since 2020, cryptocurrency ATM installations have registered a constant growth driven by a favorable regulatory context and an expansion of the cryptographic market worldwide, where different cryptocurrencies reached their historical superlative value.

Cryptocurrency ATM installations peaked in 2021, with 1,971 ATMs installed in December of that year alone. The United States is the country with 33,403 ATMs installed, which is equivalent to 87.9% of the total network of cryptocurrency ATMs.

The leading manufacturers in the market are: Genesis Coin with 40.9% of the market share, followed by General Bytes with 21.6%. The third place is occupied by BitAccess with 16.1% of the market, followed by Coinsource with 5.4% and Bitstop with 4.8%, closing the first five places in the market.

A highly important variable that drove the growth of cryptocurrency ATM installations was El Salvador’s decision to assume bitcoin as its legal tender in its territory.

M. Rodríguez

Click the link to subscribe to our news and media group on Telegram: https://t.me/G_ELSUMARIO_Noticias

Source: cryptocity.press

La entrada Cryptocurrency ATM Installation Down 90% apareció primero en Bitfinance.

Enthusiasts of the cryptographic system in Mexico participated in the Fintech Law and the Role of Regulators of the Bitcoin Forum, organized by the Senate. They highlighted that mistrust, ignorance and uncertainty are the aspects that have prevented the country from having a regulatory framework dedicated to cryptocurrencies and the entire ecosystem, which creates a gap between society and the new digital economy.

The accountant and fan of Bitcoin, Vanessa Solís Caballero, expressed that “Mexican regulators are afraid that a regulatory framework threatens or harms in some way the financial system of that country, something that does not necessarily happen.” But, in her opinion, there are “examples that a regulation may or may not damage the financial system.”

According to Solís, in Mexico “there is ignorance, fear, uncertainty, and that is why distance is created. “But there are countries that, without the need to compromise the financial system, have created regulatory frameworks.”

Solís admits that there are different legislative documents that address the issue of taxes. But she points out that “there is nothing clear about the use of cryptocurrencies” and citizens require clear regulations that congratulate the management and operation of digital assets.

“We are in an area of ​​uncertainty, and we need certainty, and that is going to be provided by the laws, making everyone apply them. We are fans of decentralization. But the people who are doing things right, who are not laundering money and are using the assets to improve transactions by taking advantage of technology, want to regularize themselves, but they don’t know how,” the accountant highlighted.

Regulation must be systematic

Another of the panelists who participated in the forum was the lawyer Rebeca Álvarez, director of the Loxical law firm, dedicated to new technologies, who recommended that the regulation of digital currencies in Mexico should be “systematic” and in her opinion the project of “Fintech law does not cover the entire cryptographic spectrum, so it is insufficient.”

Álvarez described the legislation as “paternalistic” because it is based on the protection of users over companies or legal institutions that operate cryptocurrencies in order to avoid “risks for people who use new technologies to pay and consume.”

The lawyer considers it of great importance that the authorities get involved in the discussion about the regulation of the cryptographic ecosystem in general that allows legislators to create confidence in this type of technology. “It is important that there are legislators, the public sector, that there are judges, without these three elements, the Mexican legal system cannot function,” she stressed.

According to Álvarez, it is necessary to define “clear, broad, flexible concepts that are in accordance with business models focused on cryptocurrencies” and I urge legislators to participate in a “dialogue to generate trust in this technology.”

M. Rodríguez

Source: criptoides.com

La entrada Ignorance affects crypto regulation in Mexico apareció primero en Bitfinance.