Cryptocurrencies are notorious for their volatility, but the crypto market has recently shrunk to an all-time low this year. The cryptocurrency market cap reached a $3 trillion market cap in November 2021, but now it has fallen by $2 trillion.
The market cap has remained stable since June 28, 2022, at $977 million. All major coins are now worth half or even less than their all-time high.
Experts believe that this is due to increasing inflation and the reduced risk appetite of investors that have resulted in the massive sell off. According to the report, many altcoins that do not possess any value will not survive these market movements.
The CEO of crypto exchange BuyUcoin, Shivam Thakral, has said that increasing prices of food, gas, and energy are putting pressure on the crypto market.
The massive losses suffered by investors, combined with increased volatility, have compelled nations to impose cryptographic regulations. America does not consider crypto currencies as legal tender and regulations vary state by state. Canada and Singapore have similar scenarios to the US.
Japan and Australia, on the other hand, consider crypto as a legal, taxable product.
Amid a recent turmoil in markets, the Financial Stability Board on Monday said that it will propose global rules for the cryptocurrency sector. https://t.co/dTmjV3bUdg
— Mint (@livemint) July 11, 2022
International body to create a regulatory framework
The international body for monitoring and recommending financial systems, called the FSB, or Financial Stability Board, will provide a crypto regulatory framework.
The FSB is going to submit a report containing regulations and oversight given by the finance ministries of G20 nations.
These reports will try to close the gaps in the pre-existing crypto regulatory framework.