“The most important thing for regulators is to understand crypto and understand that it is here to stay,” Yoni Assia says.
The CEO of eToro has predicted that regulators will ramp up their efforts to clamp down on cryptocurrencies as greater numbers of retail investors express an interest in the space.
Speaking to the Financial Times, Yoni Assia warned that it is crucial for regulatory bodies to learn more about how the likes of Bitcoin and Ether work before they implement new rules. He added:
“The most important thing for regulators is to understand crypto and understand that it is here to stay.”
Assia added that exchanges need to communicate the risks that are associated with investing in “high-risk” assets such as cryptocurrencies. Several platforms have come under scrutiny in recent months for failing to include such disclosures on their adverts. He added:
“There’s no doubt an asset that went up 100% can very easily go down 50%. There’s no doubt that if something went up 1,000% it’s very volatile, and you should understand that as part of your portfolio allocation.”