In the recent time period, the world has become a victim of the financial crisis and to avoid it, many of the crypto investors are transferring their assets into crypto to use it as a safe haven, which has now, drawn the attention of the academic world.

On April 17, 2020, the Oxford University Law Faculty posted a <a href="https://www.law.ox.ac.uk/business-law-blog/blog/2020/04/how-market-cryptocurrencies-affected-coronavirus-and-why-should-we" target="_blank" rel="noopener">blog</a> stating that currently, the crypto trading could harm the traditional finance, therefore, it is important to make strict laws regarding <a href="https://www.cryptoknowmics.com/news/crypto-trading-exchanges-in-india/">crypto trading</a> to prevent the traditional finance system.
<h2>Investors Do Not Trust Central Authority</h2>
The researchers of the Oxford University Law Faculty has stated that the basic feature of any <a href="https://www.cryptoknowmics.com/news/centralized-vs-decentralized-cryptocurrency/">cryptocurrency is decentralized</a>, it does not rely on a central authority. And during the crisis, if they start moving their asset into crypto that means they do not trust their government authorities regarding their funds.

According to the researchers, the trading volume of top 100 cryptocurrencies between January 01, 2020, and March 11, 2020, increased, in response to the COVID-19. But when it came to traditional financial market the positive correlation went down.

The analysts also stated that the high volatility crashes and bubbles of the crypto market depend on the herding behaviour of the group of investors. They even mentioned that cryptomarket need regulations because currently it is lightly regulated and does not provide transparent information.

Market influencers like Telegram channels and Whales easily influence the crypto market.
<h2>Oxford University Law Faculty Worried About Uninformed Investors</h2>
While talking about the asymmetric information, the blog explains, “Sophisticated investors lure uninformed investors into the crypto market by creating an artificial demand for tokens and then swiftly selling their tokens, leaving the uninformed investors with a loss”.

The Oxford University Law Faculty analysts further stated that they were concerned regarding the investors herd behaviour, because if the uninformed investors get influenced with it then it could cause a market crash.

Additionally, it has been mentioned that presently, the traditional market is related to the crypto market, therefore it is important to make regulations for crypto market as soon as possible to prevent the systemic risk of the traditional financial market.

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Oxford University Law Faculty Advices To Regulate Crypto Market

Oxford University Law Faculty has stated that the crypto trading could harm the traditional finance, therefore, the crypto trading should get regulated.

Jyoti is a graduate from GGSIPU and has done her PG Diploma in English Journalism from IIMC. Presently, she is working as a content writer with Agio Support Solution Pvt. Ltd. Her aim is to provide informative content about cryptocurrency and blockchain, to the tech-enthusiasts.

Oxford University Law Faculty Advices To Regulate Crypto Market

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