The fact that the US Securities and Stock Exchange Commission (SEC) reduced sanction practices in the field of crypto assets influenced the sector’s increasing security risks. This situation came to the agenda after an important vulnerability in recent days. In the attack on the crypto exchange Bybit, the amount of assets stolen from customers reached very high values.
Regulation Discussions
John Reed Stark, one of the former SEC staff, said that the withdrawal of SEC’s inspections on crypto platforms may cause problems in the protection of investors. Stark, this situation, the regulatory institution’s responsibilities have not been fulfilled enough, he said.
In the statements, it was emphasized that crypto exchanges lack regulatory obligations, unlike traditional financial institutions. The absence of funds, inspection, insurance and other protective measures reserved for customer assets was the focus of criticism.
On a single screen instant prices, important data, news, latest developments, comments and discussions at Chat! Come right away from your eyes!
Security gaps
The attack on Bybit was associated with North Korean Cyber Crime Organization Lazarus Group. Experts stated that the attack is a clear result of the lack of inspection in the sector. While the stock market took various financial measures to regain stolen assets, the possibility that investors could not be eliminated continued to remain on the agenda.
Former SEC official John Reed Stark included the following statements on the subject:
“There is no regulatory audit in crypto exchanges; Customer protection, financial requirements, individual licensing, US audits or insurance applications are not available. This weakens the responsibility mechanisms of the sector. ” – John Reed Stark
SEC’s distance from interventions in the crypto area receives comments that it may cause similar lack of control on international platforms. But before these problems such as hacking, it is necessary to see that SEC has caused more important weaknesses for him to pull his hand from the crypto. For example, for months in the field of breast coin, fraudsters have led to grievances freely. With this What is required for crypto currency exchanges is to form the legal framework before the SEC pressure and create the necessary regular inspection mechanisms. When Stark adopts an opposite posture in every period, we can also evaluate the last comments.
Investors continue to look for ways to protect their assets by careful about the measures they take. The steps taken by regulatory institutions and the sector’s own initiatives are critical to covering the vulnerabilities of security.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
