Ecu Union (EU) Securities and Markets Authority (ESMA) issued a warning on Tuesday, stating that problems in the cryptocurrency industry could become a threat to financial stability in future. This warning has come when Cryptocurrency The size of the sector is increasing and its relationship with the traditional financial market is also getting stronger. ESMA has appealed to take precautions about this, especially when the Economic Policy of America is causing turmoil in the global market.
Increased relationship between Crypto and Traditional Financial Market
ESMA’s Government Director, Natasha Cazenave said in his speech in the European Parliament that EU’s finial markets are currently facing serious political pressure. Under these circumstances, sectors such as cryptocurrency can also cause large financial crisis. However, ESMA also said that there is no major threat to financial stability from Crypto, but it is necessary to be cautious keeping in mind the growing relations and market expansion.
America’s policy and global impact
America’s Economic Policy is causing instability in the global market. In particular, tariffs imposed by US President Donald Trump have led to a drastic decline in the stock market, which also led to a decline in cryptocurrency prices. However, most markets have improved on Tuesday. In this situation, ESMA has advised to be cautious about its possible effects, keeping in mind the small size of the crypto market.
Changes in rules for cryptocurrency
Cryptocurrency regulations are changing in the US. President Trump’s family members are making a crypto business themselves and have appealed to make regulations related to cryptocurrency buying and selling easier. How to do cryptocurrency buying and sellClick on the link for detailed information about this.
At the same time, American regulators have allowed banks to be involved in activities related to crypto, making the boundaries between traditional financial markets and Crypto blur. In addition, the US Justice Department has decided to abolish its National Cryptocurrency Enforcement Team.
Conclusion
ESMA has warned about the increasing influence of cryptocurrency, although so far there is no major threat to financial stability. Nevertheless, it will be necessary to monitor the region, given its growing effects and increasing relations with the traditional financial market. Due to global and political conditions, the fluctuations of the Crypto Market can have a widespread impact, and it is necessary to keep an eye on it.
