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Despite the resounding bankruptcy of FTX, the second cryptocurrency exchange, barely a month ago, these monetary “UFOs” have not yet disappeared. Their survival now depends on greater regulation.
The state of affairs is incredible: the new boss of FTX, the one who was in charge of liquidating current affairs, discovered with amazement that there was no internal accounting within this company based in the Bahamas, which especially filled the pockets of its founder Sam Bankman-Fried. According to the Wall Street Journala recent study of gold mining companies bitcoin listed on the stock exchange in the United States highlights the lightness of their accounts. Of the 19 listed companies and therefore forced to publish their financial information, notorious shortcomings were noted among the declarations of 16 of them. It would already take standardized accounting applied to this whole universe to see more clearly. Another frightening example in the United Kingdom noted by the Financial Times : 85% of crypto companies that want to be registered in the City would fail the tests of the financial authority on money laundering.
Rather than regulating them, many countries have already banned cryptocurrencies
Without stemming the phenomenon: according to Fabio Panetta of the ECB, the bankruptcies of FTX, and now that of Celsius, it is a bit like the bubble of the crypto generation that is bursting, but he recognizes that their setbacks do not whistle the end of the game. These new players must accept greater discipline and more control, he says. In the United Kingdom, the law governing cryptocurrencies is being finalized. Crypto companies will have no choice, to be present in the UK, they will eventually have to accept the rules of the game determined by the British Treasury. In Africa, two-thirds of African countries have issued restrictions and six countries have banned bitcoin, including Cameroon and Ethiopia. But this does not prevent the rise of cryptos, these currencies are popular on the continent because they make up for the shortcomings of the monetary system. Rather than prohibit, the monetary authorities have every interest in regulating this Wild West of finance where the losers are less known, but much more numerous than the winners who make headlines on the stock market.
► Read on RFI Knowledge: Cryptocurrencies in ten key questions
The value of cryptocurrencies has collapsed this year, do their holders have a chance to regain some of the lost gains?
This seems unlikely in the near future. Bitcoin has lost 60% of its value since the start of the year. It peaked at $70,000 in 2021, today it is worth less than $16,000, the bankruptcy of FTX precipitated its downfall. An analyst predicts the worst for 2023, bitcoin at $5,000. It must be said that the cryptos which are mainly used to speculate have shown their weakness this year when the crisis occurs. They are not a safe haven, unlike gold which should attract investors due to recession fears. Even if the outlook is quite gloomy, financial heavyweights still believe in their potential. Like Goldman Sachs. The American bank has already acquired a dozen companies involved in the crypto universe and is now on the lookout for good deals. In France, a young shoot of “tech” is today making its honey from the abuses committed by FTX. Ledger offers secure wallets to hold these digital currencies. It achieved a record month in November with the influx of new customers anxious to secure their virtual money.