FCA Warns of Cryptocurrency Dealers as Europe Officials Weigh Regulation
- The UK has so far taken a watchful approach to cryptocurrency regulation.
The Financial Conduct Authority (FCA) issued a warning to British investors today about two cryptocurrency companies which are not authorized to provide investment services in the country - Local Bitcoin Ltd and BK Coin.
The warning comes as European finance ministers are scheduled to discuss cryptocurrency next week to investigate benefits and risks, and consider how the new assets should be regulated.
The UK has so far taken a watchful approach. The FCA itself doesn’t consider Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term to be regulated assets, but derivatives based on them fall under its powers of oversight. Last month, it named a small number of crypto-linked firms as having been accepted to its sandbox, which allows them to test their services and business models in a live but controlled environment.
Back to the warning, Local Bitcoin Ltd and BK Coin, apparently run the by the same persons, are targeting UK investors by offering a full range of cryptocurrency investment services, including CFDs. However the FCA stresses that the Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term claimed on both websites is fake.
This warning is yet another case in which the British authorities seem to have stepped up their game and gone after illegal cryptocurrency brokers. In November 2017, the FCA issued a warning for investors regarding cryptocurrency contracts for difference (CFD), explaining the risks involved.
Last month, the UK Prudential Regulation Authority issued a letter to CEOs of banks, insurance companies and investment firms to advise them about the risks associated with "crypto-assets". The PRA’s letter has provided the financial operators with guidelines to improve their oversight, increase scrutiny and enhance due diligence checks.
The Financial Conduct Authority (FCA) issued a warning to British investors today about two cryptocurrency companies which are not authorized to provide investment services in the country - Local Bitcoin Ltd and BK Coin.
The warning comes as European finance ministers are scheduled to discuss cryptocurrency next week to investigate benefits and risks, and consider how the new assets should be regulated.
The UK has so far taken a watchful approach. The FCA itself doesn’t consider Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term to be regulated assets, but derivatives based on them fall under its powers of oversight. Last month, it named a small number of crypto-linked firms as having been accepted to its sandbox, which allows them to test their services and business models in a live but controlled environment.
Back to the warning, Local Bitcoin Ltd and BK Coin, apparently run the by the same persons, are targeting UK investors by offering a full range of cryptocurrency investment services, including CFDs. However the FCA stresses that the Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term claimed on both websites is fake.
This warning is yet another case in which the British authorities seem to have stepped up their game and gone after illegal cryptocurrency brokers. In November 2017, the FCA issued a warning for investors regarding cryptocurrency contracts for difference (CFD), explaining the risks involved.
Last month, the UK Prudential Regulation Authority issued a letter to CEOs of banks, insurance companies and investment firms to advise them about the risks associated with "crypto-assets". The PRA’s letter has provided the financial operators with guidelines to improve their oversight, increase scrutiny and enhance due diligence checks.