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What are the rules for halting cryptocurrency trading in the stock market?

avatarFares KarimDec 16, 2021 · 3 years ago1 answers

Can you explain the rules and regulations that govern the halting of cryptocurrency trading in the stock market? What circumstances can lead to the suspension or halt of trading? How does this process work?

What are the rules for halting cryptocurrency trading in the stock market?

1 answers

  • avatarDec 16, 2021 · 3 years ago
    Halting cryptocurrency trading in the stock market is governed by rules and regulations to maintain market integrity. Extreme price volatility, market manipulation, and regulatory concerns are the main triggers for trading halts. When there is a sudden and significant price movement, trading may be halted to prevent disorderly markets and protect investors from potential losses. Market manipulation, such as pump and dump schemes, can also lead to trading halts to maintain a fair trading environment. Regulatory concerns, such as investigations or enforcement actions, can result in the suspension of trading as well. The process of halting trading involves the exchange or regulatory body issuing a notice to temporarily suspend trading. During the halt, investors are unable to buy or sell the affected cryptocurrency. Once the concerns or issues have been resolved, trading can resume as usual.