UK FCA Asks for Increasing Supervision of Crypto-Related Promotions
- The UK FCA Chairman expressed concerns about the surge of crypto-related scams throughout such promotions.
The UK Financial Conduct Authority (FCA) has called off strengthening the supervision of online advertising of crypto-related products and services on Monday. According to Reuters, the regulatory watchdog has been concerned about the constant flood of 'problematic content' that does not offer value to investors.
“There are no assets or real-world cashflows underpinning the price of speculative digital tokens, even the better-known ones like Bitcoin, and many cannot even boast a scarcity value,” Charles Randell, the UK FCA Chairman, said in a speech. The authority referred to influencers and celebrities who had been actively endorsing tokens and giveaways related to 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. In fact, he cautioned on scams that are using the digital assets’ name to catch people and persuade them to invest in the schemes.
Moreover, the FCA had been actively asking to assess the feasibility to find the right balance on regulating the environment, and at the same time, providing a good scenario for the crypto companies to develop their businesses in the country. “We’ll need two streams to tackle the problem of online financial scams: appropriate 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, including self-regulation by online platforms and robust enforcement by the authorities, and greater consumer awareness about online scams,” he pointed out.
Crypto Companies Withdrawing Their FCA Applications
“We are not going to award FCA registration or authorization to businesses which will not explain basic issues, such as who is responsible for key functions or how they are organized. That would be token regulation in the worst sense,” Randell added.
The warning from the FCA is not a surprise, considering that crypto firms had been reportedly quitting their FCA registration application due to the regulations in the United Kingdom. Finance Magnates reported in June that a total of 64 crypto companies had withdrawn their applications from the British watchdog as the approval process turned out to be extremely slow.
The UK Financial Conduct Authority (FCA) has called off strengthening the supervision of online advertising of crypto-related products and services on Monday. According to Reuters, the regulatory watchdog has been concerned about the constant flood of 'problematic content' that does not offer value to investors.
“There are no assets or real-world cashflows underpinning the price of speculative digital tokens, even the better-known ones like Bitcoin, and many cannot even boast a scarcity value,” Charles Randell, the UK FCA Chairman, said in a speech. The authority referred to influencers and celebrities who had been actively endorsing tokens and giveaways related to 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. In fact, he cautioned on scams that are using the digital assets’ name to catch people and persuade them to invest in the schemes.
Moreover, the FCA had been actively asking to assess the feasibility to find the right balance on regulating the environment, and at the same time, providing a good scenario for the crypto companies to develop their businesses in the country. “We’ll need two streams to tackle the problem of online financial scams: appropriate 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, including self-regulation by online platforms and robust enforcement by the authorities, and greater consumer awareness about online scams,” he pointed out.
Crypto Companies Withdrawing Their FCA Applications
“We are not going to award FCA registration or authorization to businesses which will not explain basic issues, such as who is responsible for key functions or how they are organized. That would be token regulation in the worst sense,” Randell added.
The warning from the FCA is not a surprise, considering that crypto firms had been reportedly quitting their FCA registration application due to the regulations in the United Kingdom. Finance Magnates reported in June that a total of 64 crypto companies had withdrawn their applications from the British watchdog as the approval process turned out to be extremely slow.