Crypto Flash Crash Sparks Regulatory Scrutiny, Market Reassessment

A major cryptocurrency market crash in mid-October 2025 led to a $50 billion decline in value, causing sharp corrections and outflows from various digital asset markets. The Financial Stability Board and the International Organization of Securities Commissions (IOSCO) highlighted existing regulatory gaps that amplified the impact on investor confidence. This event underscores the need for resilient governance structures as crypto continues to mature, highlighting vulnerabilities amidst heightened regulatory scrutiny.