Person in charge of the OCC in the United States: You cannot trust the encryption company before obtaining federal supervision

According to reports, Michael Hsu, acting chief auditor of the United States Office of the Comptroller of the Currency (OCC), said that at present, we cannot know which participants are trustworthy and which are not, until a reliable third party, such as the unified home country regulator, can supervise them meaningfully,

Interpretation of this information:

Michael Hsu, the acting chief auditor of the United States Office of the Comptroller of the Currency (OCC), recently made a statement highlighting an essential issue with the cryptocurrency market. Mr. Hsu noted that it is currently challenging to identify trustworthy participants within the industry from those who are not trustworthy. He suggested that the solution to this problem would be to establish a reliable third-party regulator, such as a unified home country regulator, who can meaningfully supervise the market.

The cryptocurrency market has grown substantially in recent years, with more investors joining and more digital assets being created. However, with the increase in market growth has come an increase in fraudulent activities. The decentralized nature of the market, which was created to provide anonymity to users, has become a loophole for bad actors to exploit. This has made it difficult for regulators, who are used to centralized financial systems, to control the market, which Mr. Hsu highlighted in his statement.

Cryptocurrency markets operate without centralized intermediaries such as banks, which act as intermediaries in traditional financial systems. Instead, transactions are validated by a network of participants in a peer-to-peer system, making it challenging to determine the legitimacy of market participants. To reduce malpractices, a reliable third-party regulator could analyze the market, impose rules, and monitor market participants’ activities closely. They would work to ensure that the market operates under fair circumstances.

In conclusion, Mr. Hsu’s statement highlights the need to establish a regulatory framework for the cryptocurrency market. While the market’s decentralized nature provides anonymity to users, it also creates loopholes for bad actors to exploit, which must be addressed. A reliable third-party regulator would play a crucial role in analyzing the market, codifying rules, and monitoring market activities to ensure that it operates under fair circumstances.