The FTX crash has resulted in a colossal drop in the value of cryptocurrencies, with the overall crypto market cap falling 20% in a week to $824 billion from $1.02 trillion. In general, 2022 has been a rough year for crypto investors with the fierce falling price of Bitcoin along with the crash of luna.
CEO of BuyUcoin, Shivam Thakral mentioned,
“The FTT crash has had a global impact on crypto prices and volumes. Indian exchanges have seen a similar impact on retail user sentiments. Traders are expecting the FTX fallout to create a bottom for the prices and global regulations will be the way to move forward.”
FTX’s fall has led investors to worry to the degree that cryptocurrency exchanges like CoinDCX and CoinSwitch Kuber had to convince traders and investors about reserves and the situation.
Countries worldwide are still figuring out how to regulate cryptocurrencies. The US Securities and Exchange Commission (SEC) is looking for possible breaches of securities rules, and the Bahamas has frozen some of FTX assets and will start a criminal inquiry. Even Turkey, which has been considered an evolving crypto market, has announced an investigation into the collapse. India is yet to announce its final decision.
The Reserve Bank of India (RBI) has issued a series of notifications since 2017, making people aware that cryptocurrencies are not legal tender and warning them about the risky nature of crypto investments.
Raj Karkara, COO of ZebPay crypto exchange, said,
“The collapse of FTX and its native token, FTT, has been a shock for the entire crypto community. I am deeply sorry for those impacted by the subsequent fallout. We have seen significant industry players falter recently, and incidents like these reinforce the need for government regulation. It will ensure that all industry players follow a mandated code of conduct that safeguards investor interests. I will also urge investors to do due diligence to select the right investment partners.”
Looking at the current situation India needs to issue regulatory measures regarding the crypto industry to ensure consumer protection and transparency for investors interested in new crypto coins.