UK Regulators Echo Tired Warning on Crypto, No They Won’t Ban Bitcoin
Last week it was in the US, this week it is the turn of UK
regulators to scrutinize cryptocurrency and their findings, as expected, are
not favorable. The UK’s financial services watchdog has reissued warnings on
crypto assets echoing the same tired arguments we have all heard before.
No Intrinsic Value
This is usually the argument put forward by central banks
and regulators in defense of their own sovereign currencies. It appears that Facebook
has initiated an avalanche of anguish from governments in fear of its growing
dominance. Many have now started to eye other crypto assets which are poles
apart from Libra which will be controlled by billionaire Zuckerberg and his
consortium of US tech and finance giants.
According to Forbes,
executive director of strategy and competition at the UK Financial Conduct
Authority (FCA), which oversees London’s huge banking industry, Christopher
“This is a small, complex and evolving market covering a broad range of activities. Today’s guidance will help clarify which crypto-asset activities fall inside our regulatory perimeter. Consumers should be cautious when investing in such crypto-assets and should ensure they understand and can bear the risks involved with assets that have no intrinsic value.”
This is nothing new and a common sentiment echoed by finance
regulators across the planet. What is clear from these statements is that UK
regulators do not recognize digital property yet, which is also no surprise
since the industry is barely a decade old.
Nevermind The FUD
Forbes ran with the FUD headlining the possibility of a
Bitcoin ban in the UK. As we have seen from recent US senate hearings however,
this would be virtually
impossible to achieve by any nation. Even China has realized that it cannot
ban Bitcoin as trading
still thrives there despite all efforts from Beijing to quash it.
The article also blamed the rebuff of Facebook’s crypto
plans on Bitcoin’s retreat to $10,000 but as we already know this is a simple
market correction that has happened countless times before in previous bull
According to Herbert Sim, head of business development from
Broctagon Fintech Group, the UK could start to tighten its grip on
cryptocurrencies. He added;
“This lack of enthusiasm is shared by several countries; the U.S. with its scrutiny of libra, and India, who are looking to implement a similar ban on cryptocurrencies which are not state regulated. These movements could end up coming back to bite. The international competition on cryptocurrencies is heating up and there are huge risks in being left behind.”
Falling behind is exactly what would happen if UK regulators
were imprudent enough to ban crypto assets which is why it is unlikely to
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of EWN or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.