An official on the UK’s prime monetary regulator has issued new feedback calling for client warning on bitcoin and cryptocurrency investing.
As reported by Financial News, Financial Conduct Authority (FCA) director of technique and competitors Chris Woolard addressed the topic at a blockchain occasion held by the regulator final week. While affirming the regulator’s enthusiasm for blockchain on the time, Woolard voiced concern in regards to the current meteoric growth noticed within the cryptocurrency markets.
In specific, he argued extra maybe ought to be performed to alert customers that cryptocurrencies aren’t regulated monetary devices and, as such, they do not have the patron protections related to extra mature belongings.
According to the information supply, Woolard mentioned:
“I am not saying that we view digital currencies as an inherently bad thing … but we do have to exercise a degree of caution.”
Woolard went on to pledge that the FCA would proceed to ring the alarm over potential suspicious actors within the trade – a job it has lengthy performed. Among others, the FCA has beforehand issued warnings in opposition to a suspicious crypto trading website and a digital currency scheme referred to as OneCoin that has drawn the ire of a number of world regulators.
Still, the FCA has proved to be among the many extra progressive regulators on the difficulty as nicely, granting US startup Circle Internet Financial, on the time a bitcoin brokerage, an e-money license in 2016.
As lately as final week, the company additional revealed it has elevated its dedication to trade startups by a ‘sandbox’ initiative by helping to incubate 9 new blockchain and distributed ledger startups.
Disclosure: CoinDesk is a subsidiary of Digital Currency Group, which has an possession in Circle.
Chris Woolard picture by way of Innovate Finance/YouTube