The cryptocurrency business has grown rapidly over the past few years. Last year more than seven percent of the people in India had digital currency in the form of cryptocurrency. UNCTAD, a UN trade organization, reported that the use of cryptocurrencies has increased worldwide, including in developing countries, during the Corona epidemic. However, this segment also has problems like tax evasion and money laundering.
UNCTAD has released data on the top 20 countries holding digital currencies last year. Ukraine ranks first in this. About 12.7 percent of Ukraine’s population had a digital currency. India is at the seventh position in this list. However, UNCTAD states that cryptocurrencies are a volatile financial asset and can cause social risks as well as financial losses. “The recent shocks in the cryptocurrency market indicate that holding cryptocurrencies poses a risk to privacy but becomes a government problem if central banks take measures to protect financial stability,” UNCTAD said.
The price of Bitcoin, the largest cryptocurrency by market capitalization, has dropped significantly in the past few months. This has caused a huge loss to the holders of bitcoin. Apart from this, other cryptocurrencies have also declined. UNCTAD said that if cryptocurrencies become a major means of payment, it could affect the financial stability of many countries. Authorities in the US are scrutinizing this segment vigorously due to the increasing number of scams involving the crypto segment. According to an estimate, these scams have caused losses of over a billion dollars to crypto investors in the US from the beginning of last year to March this year.
Senate Banking Committee chief Sherrod Brown has sent a letter to global tech companies Apple and Google asking them to explain crypto-related apps available on their App Store and Playstore, as well as ways to deal with counterfeit apps. The Federal Bureau of Investigation (FBI) recently warned that fake crypto apps are causing huge losses to investors. Recently, there was a case of a Hollywood producer Ryan Felton doing crypto scams.