World’s Largest Cryptocurrency, Authorities, and Challenges
The world’s largest cryptocurrency continues to dominate headlines. It is not surprising as Bitcoin remains to be one of the most popular cryptocurrencies around the globe. Interestingly, Bitcoin prices continued to fluctuate on February 24 as authorities in different countries expressed concerns over the digital coin’s volatility.
As a reminder, after plunging 22% from Sunday’s record high of $59,294 on Tuesday, Bitcoin prices stabilized at about $50,568 on Wednesday.
It is worth noting that endorsements from Silicon Valley and Wall Street fostered the recent surge. For example, Tesla purchased $1.5 billion worth of Bitcoin in January. Moreover, broader acceptance from financial institutions like MasterCard, Bank of New York Mellon, and BlackRock also pushed the price further.
This is not the end of the story, as the upward move was put on hold this week. As a reminder, economic authorities and business people, even Tesla CEO Elon Musk, showed skepticism. The situation regarding the world’s largest cryptocurrency in terms of market capitalization is quite complicated. For example, U.S. Treasury Secretary Janet Yellen also expressed skeptical views on cryptocurrencies.
According to Yellen, it is a highly speculative asset. Moreover, she mentioned that it can be extremely volatile.
Bitcoin and South Korea
As stated earlier, the largest cryptocurrency encountered certain problems. Interestingly, the Bank’s of Korea governor also discussed cryptocurrencies. According to Lee Ju-yeol, there is no intrinsic value in crypto assets.
Furthermore, he said cryptocurrency prices will be extremely volatile. It is worth noting that, South Korean financial authorities are moving to tighten grips on cryptocurrency trading on many fronts, with a new law governing digital assets set to go into effect on March 25.
For instance, starting next year, cryptocurrency exchanges will be placed under tight scrutiny by the regulator. The Financial Intelligence Unit is looking for suspicious activities in the cryptocurrency market only through banks. However, the unit will be able to directly monitor exchanges to identify illegal activities.
Bitcoin is one of the most popular cryptocurrencies in the world, and it is not surprising that authorities are closely monitoring this cryptocurrency. However, there is no need to create additional challenges. Authorities should cooperate with experts and crypto-related companies to find the best solution. Moreover, it is desirable to join forces with authorities from other countries to tackle illegal activities. This way it will be easier to identify such cases. Despite all challenges, people are ready to buy Bitcoin.
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