UK Authorities May Toughen Attitude To Crypto Sphere
The UK financial regulator will consider the possibility of banning the sale of cryptocurrency-based derivatives, Financial Times reports. Such actions will be the first significant intervention of the authorities in the crypto sphere.
The Financial Conduct Authority (FCA) decided to begin consultations on the prohibition of the derivatives sale, which may include CFDs, options, futures, and other financial instruments related to cryptocurrency, in Q1 2019.
FCA made an announcement almost simultaneously with the release of the report by the Cryptoasset working group, which included experts from the FCA, the treasury of the country, and the Bank of England. The group, created in the spring of 2018, had to provide a conclusion on how vulnerable the crypto market is to fraudsters, all kinds of manipulations, and criminal acts related to money laundering.
The report of the working group allowed the Authority to conclude that cryptocurrency is not provided with any value, so investors should be prepared for the loss of the invested funds. Besides, digital assets represent a potential threat to financial stability.
The Cryptoasset working group believes that cryptocurrency derivatives can be even more dangerous than cryptos themselves since they can lead to losses exceeding the initial investment.
Earlier, James Kaufmann, a representative of RPC, expressed the opinion that Britain will be able to regulate the crypto sphere only by the end of 2020.