News

UK watchdog warns against the dangers of unregulated cryptocurrencies

LONDON (Reuters) – the uk’s markets watchdog said on Wednesday that bitcoin and other cryptocurrencies have no intrinsic value, and offer consumers very little protection, but added that such a coin will fall out of the scope of its powers.

FILE PHOTO: a representative of the Ethereum virtual currency is on the PC motherboard can be seen in this image, the image for February 3, 2018. REUTERS/dado Ruvic/Image/File Photo

The Financial Conduct Authority (fsa) said computer markets were highly dysfunctional, with a focus on the consumer, in order to understand some of the risks associated with investing in non-regulated assets.

“A combination of market immaturity, volatility and lack of credibility of information, or the oversight raises questions about the integrity, and the manipulation and misuse of insider information within the cryptoasset markets,” the FCA said in a statement.

In spite of these failings, the FCA said that the current rules do not apply to bitcoin as well as other cards such as the second-largest currency, ethereum, or for a business, such as stock exchanges and trading platforms.

The guardian had to explain what aspects of the burgeoning computer industry it regulates — is a major milestone in the uk’s regulation of an industry that still forms a very small part of the broader financial system, but it has attracted a strong retail investor following.

“We have had a number of concerns regarding a number of issues that a consumer may be exposed to,” Nick Cook, FCA’s director of innovation, told Reuters, adding that the investment made by Uk consumers in a computer are still quite low.

The FCA said in its guidance, to inform the british ministry of finance, as there are new laws for cryptocurrencies.

The ministry of finance said in a response via e-mail, and that the guidance was welcome, and that the plan will be available on the unregulated cryptocurrencies later in the year.

Private investors all over the world are attracted to cryptocurrencies, with very volatile assets, which is in contrast to fiat money, or other assets, will often have warranties of any kind, because of the potential to quick gains.

Proponents say that, with the digital coins you can transform payments and how companies are raising capital, even though such examples are very rare.

In the handling of cryptocurrencies, by the regulators, it’s in focus, after Facebook revealed its plans to Scale mint, which is one of reactions of politicians and regulators all over the world.

At the G7 finance ministers and central bankers said last month that the monitor and other digital currencies have serious concerns and would like to be as close as possible, to ensure that they do not get angry, on the world’s financial system.

While the FCA does not mention the Scale in its support, and said that some of the “stablecoins”), a form of cryptocurrency, such as the Scale, which is supported by assets such as fiat currency, would be subject to the rules under certain circumstances.

The FCA couldn’t tell what the balance would have to be dealt with, because of their structure, design, and operational design still has to be determined, Cook said.

Different types of cryptocurrencies, such as security tokens — coins of the rights and obligations of the shares or units in investment funds were subject to the rules, the FCA said. As such, the companies issuing them should require permission.

CryptoUK, a body of the industry, the so-called, for the sake of comprehensibility.

“The uk is cryptoasset sector is an important part of the uk fintech industry, but it must have regulatory certainty in order to take advantage of,” a chair Iqbal Gandham said in a statement.

PATCHWORK OF RULES

Currently, cryptocurrencies are subject to a patchwork of regulations that vary from country to country.

Regulators in the united Kingdom, the European Union and the United States of america, have a look at how they are able to use the existing securities, anti-money laundering and consumer protection regulations for the consideration of a new set of rules.

Others, such as China, have banned cryptocurrencies, frankly. A government panel last week recommended a similar measure.

A handful of smaller countries, from belarus to the kingdom of Bahrain, has come up with a specific legislation for the digital currency. In their efforts to contribute to the development of the global market, and the growth rate of the who’s who of the industry, from the exchange with real estate agents.

A collection of a Bitcoin (virtual currency) of tokens are shown in this figure, figure, December 8, 2017. REUTERS/Benoit Tessier/Image/File

The FCA said that it would continue to work closely with other national and international regulatory agencies, and to coordinate approaches.

As of now, said the Father, a Rice, a lawyer at the law firm, Ashurst, and there was very little that can be done within the existing powers in this field.

“The FCA’s hands are tied. If the united kingdom wants to create a crypto-current assets within the regulatory net, and the law needs to be changed, and that it is within the Treasury’s gift,” he said, referring to the british ministry of finance.

Reporting by Huw Jones and Tom Wilson; Editing by Catherine Evans

Follow us

Don't be shy, get in touch. We love meeting interesting people and making new friends.

Most popular