World Requires Cryptocurrency Regulation To Avert Financial Meltdown, Says Oxford Law

Oxford law researchers mention that cryptocurrency market regulation is indispensable to halt systemic jeopardy in times of catastrophe.

The recent spectacle of individuals converting their assets into digital currencies considering them as a safe haven, has drawn the consideration of the academic world.

According to an Oxford University Law Faculty blog post on 17th April, several researchers have noticed that virtual currency trading could pose a threat to conventional finance and it should be sternly regulated in the times of catastrophe to stop systemic risk to the system.

The academic researchers mention that the cryptocurrency transactions are decentralized and don’t depend on any central authority. Because of this, the investors lean towards transferring their capital into digital assets when they lose their faith in banks and governments, in order to protect their funds.

The blog further mentions,

“Sophisticated investors lure uninformed investors into the cryptomarket by creating an artificial demand for tokens and then swiftly selling their tokens, leaving the uninformed investors with a loss.”