Cryptocurrency looked for a time like it was taking over the world.

Now, it will be lucky to survive the economic downturn.

According to a new study released by the Bank for International Settlements (BIS), 73% and 81% of Bitcoin buyers have lost money on their crypto investments.

The fall of crypto giant FTX proves that the crypto sector must be subject to the same regulations as the traditional finance sector, according to Lael Brainard, VP of the American Central Bank (Fed).

When BIS analyzed data from 95 countries between 2015 and 2022, they found that three-quarters of buyers have lost money – and they’re working to understand the implications of crypto on the financial system and how to put consumer protection in place.

Interestingly, they also found that nearly 40% of crypto purchases are by men under 35, compared to 25% of men aged 35 to 54 and 35% of women (most also under 35).

The Fed is now calling for the same regulations that the traditional financial sector is accountable to, which flies in the face of all crypto stands for but may be necessary.

The Fed’s number two told Bloomberg this week that these markets “are very concentrated, very interconnected, and you see a domino effect. The failures of one platform or one company extend elsewhere. It reinforces, I think, this need to ensure that crypto finance is included in the regulatory perimeter because it is no different from traditional finance in the risks to which it exposes investors.”

Brainard added, “There must be strong regulatory safeguards,” adding that it is “really worrying to see that retail investors are affected by these losses.”

Crypto as an industry would have never considered submitting to Fed regulations before, but the fall of FTX may have shaken some leaders.