UK warns about risks with cryptocurrencies
Banking authorities point out the risks in digital currency investments and market volatility
Through a communication distributed among the banking entities of the United Kingdom, the vice-governor of the Bank of England warned the CEOs about the risks of exposure to cryptocurrency and market volatility.
In the letter, Sam Woods, CEO of the Prudential Regulation Authority (PRA), underscored the need and commitment of banking representatives to act prudently and develop effective systems for risk management.
The security measures are aimed at the prevention of crimes such as money laundering, fraud and theft of customers who use cryptocurrencies to carry out various transactions in the country.
The vice governor made the warning about the growth of the crypto market, the investments in digital currencies and the increase of the curiosity of the public in all the options that the new economy poses worldwide, since this has also strengthened the vulnerability of the client and the manipulation by third parties.
Regarding the actions of the companies, Woods indicated that they should not take risks without doing the due thorough investigation in order to protect the client portfolio against the risks that have arisen in relation to the cryptoactives, relying on blockchain technology.
M.Pino
Source: Coincrispy
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