Future of cryptocurrencies in the UK depends on the FCA
A year ago, the Financial Conduct Authority proposed that digital assets should be banned throughout the United Kingdom
The United Kingdom has been characterized as one of the countries with one of the largest economic strengths in the world to the extend of having one of the strongest currencies traded in the market today.
This has been possible not only thanks to fiat money, but cryptocurrencies have also had an important weight in favor of this statistics.
A study by Michelmores LLP says that 20% of millionaire millennials in the United Kingdom have part of their fortune in bitcoins and other cryptocurrencies.
However, the future of the freedom to use digital assets is at stake, since the Financial Conduct Authority (FCA) recently proposed a ban on these currencies in the region.
In July 2018, the FCA warned that cryptocurrencies pose a great risk to consumers who are generally poorly informed about them, and recommended that products such as derivatives and notes traded on the stock exchange, which refer to crypto assets, were “inadequate for small investors”, says Sukhi Jutla, co-founder of the UK-based blockchain platform MarketOrders.
“The proposed ban will be seen as a big blow and a step backwards for innovation in the cryptoactive space. It will also indicate that, although the United Kingdom is the leader in the fintech scene, they will have effectively compromised this position,” Jutla said.
This FCA movement stems from a public commitment to comply with the Group’s Final Report on Cryptoactives. Although the report recognizes that cryptos can facilitate cheaper and more efficient transactions by eliminating intermediaries, most of the report portrays cryptos negatively. In the report, the FCA mentions that it wants to “mitigate risks to consumers and the integrity of the market, and avoid the use of crypto assets for illegal activities.”