Investors enter the cryptocurrency space at their own risk, and authorities should not look out for people who want to take risks with their money.
People should do their own due diligence before entering this space, and not expect the government to help when things go wrong.
Cryptocurrency holders are betting that the price will rise to attract newcomers to the market to buy into their holdings.
These investors would not care if the key players in the crypto market have sufficient reserves or adhere to corporate governance.
There are two reasons why people are attracted to cryptocurrencies. The first is its astronomical rise in the past. The second is that ordinary investors had been displaced from traditional financial markets and looked elsewhere for profit.
Years of low interest rates and massive quantitative easing benefited a small group of big financial players. If the playing field is level, common investors will return.
The principle of caveat emptor, or beware of the buyer, is applied in all markets. The responsibility lies with the people who buy crypto products, not the government.
Vincent Lau Yeow Sin
