Limited supervision

According to reports, Fitch, an international rating agency, said that the collapse of the encryption company highlighted the problem of limited supervision. Risk and rating considerations related to entities operating in the global cryptoecosystem are still evolving. It is still important to distinguish between digital asset innovation and “smart contract” in the decentralized ledger. The lack of clear encryption regulatory standards among jurisdictions increases the risk of fraud and market manipulation among encryption users. Interpretation of this information: The recent collapse of an encryption company has brought to light the…