Standard & Poor's: Current crypto drop 'a timely warning'
0Standard & Poor's: Current crypto drop 'a timely warning'
International credit rating agency Standard Poor's (SP) said the decline in cryptocurrency markets was a "timely warning" that would not have a significant impact on traditional financial markets or the macroeconomics.
In a statement from S&P, it was stated that this limited impact was due to the relatively small size of the emerging crypto ecosystem and its limited connection with traditional finance.
It described the current crypto decline as a "timely warning," adding that the recent decline in crypto assets, including stablecoins, will not have a significant impact on traditional financial markets or the macroeconomics, given that these assets are not yet systematically significant.
"Next time things may be different as the crypto industry continues to grow," the statement said. evaluation was made.
In the statement, which stated that the shock waves caused by the decline of crypto assets remained in the crypto markets, it was stated that this affected the small investors the most.
In the statement, it was stated that the potential risks inherent in the ecosystem in question form the basis of regulatory pressure.
Stating that certain crypto assets will continue to grow in both size and scope, it was noted that their connections with the traditional financial system will continue to grow and deepen.
In the statement, it was pointed out that financial stability concerns will increase in parallel, and it was stated that regulatory decisions will determine how big and damaging the repercussions of the next crypto fall can be.
Fitch, one of the international credit rating agencies, also said in a statement yesterday that the latest developments will increase the calls for the regulation of stablecoins.
In the statement, it was stated that the loss of trust of investors in stablecoins could have significant negative repercussions for cryptocurrencies and digital finance.
Emphasizing that the links between crypto markets and regulated financial markets remain weak, it was noted that this is expected to limit the potential for the spread of cryptocurrency market volatility, causing wider financial instability.