Coinbase has announced its launch in Australia. The move comes with significant risks, including the potential for insider trading.
Coinbase, one of the world’s largest cryptocurrency exchanges, has announced its launch in Australia. The move allows Australian investors to buy and sell digital currencies using Australian dollars.
Cryptocurrency, which uses blockchain technology to record transactions securely, has become increasingly popular in recent years. However, it has also faced criticism due to its volatility and lack of regulation, which many of its advocates prop up as a benefit, seeing the lack of regulation as “decentralization” rather than an open playing field ripe for scamming.
In addition, there have been several high-profile cases of hacks and scams involving cryptocurrency exchanges, which have raised concerns about its security.
One such case is the recent indictment of three individuals for their involvement in an alleged cryptocurrency insider trading and tipping scheme. The scheme reportedly involved the use of confidential information to trade on the cryptocurrency exchange Coinbase, resulting in illegal profits of approximately $1.5 million USD.
The indictment, which was brought by the United States Attorney’s Office for the Southern District of New York, highlights the potential risks associated with investing in cryptocurrency. While the technology has the potential to revolutionize the financial industry, it is still relatively new and untested, and investors should be cautious before putting their money into it.
In addition to the potential legal and security risks, cryptocurrency also carries significant financial risks. The value of digital currencies can fluctuate wildly, and there is no guarantee that an investment in cryptocurrency will pay off. In fact, the price of the most well-known cryptocurrency, Bitcoin, has dropped significantly in recent months, raising concerns about its long-term viability.
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In addition, cryptocurrency posed significant environmental factors, with proof of work crypto mining alone causing 27.4 million tons of carbon dioxide to be released into the atmosphere from mid-2021 to 2022. This is over three times the amount emitted by the largest coal plant in the US in all of 2021.
Amid these environmental risks, the industry continues to greenwash its practices while showing little to no improvement in this area.
Investors should carefully consider the potential risks before diving into the market. It is important to thoroughly research any investment, and to consult with a financial advisor before making any decisions.