British Financial Conduct Authority (FCA) insists on a complete ban on Bitcoin production in the name of protecting consumer rights. Despite the fact that many users replied that the risks of cryptocurrencies are the same as those of other assets, FCA continues to implement the ban. According to the report, the management is taking steps against cryptocurrency companies.
In May 2019, the FCA warned of a growing trend of online platforms deceiving investors through crypto and forex frauds. According to the report, the FCA is already examining 87 crypto companies. The report indicates a triple increase in the number of fraud cases, claiming that nearly 1,800 such cases were reported in a year. Losses due to crypto space frauds reportedly amounted to $33.2 million.
David Heffron, a partner at Pinsent Masons law firm, said that users not familiar with cryptocurrency were prone to fraud. The lack of awareness led to a loss of $492 million only because of crypto-derivation from 2017 to the end of 2018. Other factors that contributed to the large losses include high tradingTrading
– is an economic term that means the process of independent trade, independent analysis of the market and the conclusion of trade transactions.Details costs.
Danny Masters of digital asset management company CoinShares also said the ban could push users into the unregulated market. He added that regulators do not have to decide the future of certain technology. However, the Financial Conduct Authority is of another opinion, stating that it has a duty to protect consumers.
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- The UK FCA financial regulator has doubled the list of cryptocurrency companies and firms involved in unlicensed and illegal transactions, as reported by The Telegraph on November 26.