Crypto wrap: Amid a volatile week, experts want regulators to collaborate

business-standard.com:

Following a turbulent week in the cryptocurrency world, the experts want all the regulators to collaborate and the investors to educate themselves to understand the intricacies of the market.

"It was a highly volatile week for crypto markets; a series of seismic events led to the collapse of the second largest global crypto exchange, FTX. Combined with the continuing deterioration of the global macroeconomic conditions, signalled by the massive Tech lay-offs, the crisis at FTX triggered extreme churn in the crypto markets," Parth Chaturvedi, crypto ecosystem lead at trading platform CoinSwitch said.

"Regulators worldwide must collaborate more with the industry to understand its intricacies and form a comprehensive outlook that doesn't stifle innovation. Investors should proactively educate themselves as the space moves much faster," Anurag Dixit, Founder of crypto asset management platform Kunji told Business Standard.

During the week, crypto market capitalisation fell below $800 billion with Bitcoin touching $15,750 and Ethereum falling below $1,100. On Friday, the price of Bitcoin was 15 per cent down and Ethereum was 20 per cent down as compared to what it was last week.

FTT, FTX's token, was down over 86 per cent.

"This event [fall of FTX] reinforces how essential it is to maintain funds in a structured and secure way, with an amalgamation of hot and cold wallets," Dixit added.

Binance CEO Changpeng Zhao announced that the largest crypto exchange in the world will start proof of reserve. He also asked other exchanges to follow suit.

"All crypto exchanges should do Merkle-tree proof-of-reserves. Banks run on fractional reserves. Crypto exchanges should not. @Binance will start to do proof-of-reserves soon. Full