Asked about fraud in financial markets at a conference, Left said, “I think cryptocurrencies are outright fraud.” However, he did not specify whether he has investments in cryptocurrencies. Reuters reported in December last year that the US Department of Justice had launched a criminal investigation into short selling on behalf of hedge funds and research firms including Citron Research. Regarding the investigation, Left said, “I hope the Department of Justice will one day find that short sellers do not exist.”
Last month, the Reserve Bank of India (RBI) termed cryptocurrencies as a clear threat, saying that anything with a trust-based value without any asset guarantee is only speculative. The central government has prepared a consultation paper on cryptocurrencies. Inputs have been taken from various stakeholders and institutions for this.
After the steep fall in the stablecoin Terra UST almost two months ago, there has been a demand for regulation of the crypto segment in many countries. In this episode, South Korea’s financial regulator Financial Supervisory Service (FSS) also decided to tighten the monitoring of virtual assets and analyze the risks associated with them. Stablecoins are cryptocurrencies that attempt to link their market price to a reserve asset such as gold or common currencies. These are more commonly used for digital transactions that involve converting virtual assets into real assets. Stablecoin, a rapidly growing version of crypto, has emerged as a major medium of exchange.
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