The head of a British financial regulator has advised that individuals stand to lose their funds if they purchase bitcoin.
Andrew Bailey, president of the UK’s Financial Conduct Authority (FCA), informed the BBC’s Newsnight program that getting bitcoin positions similar risks to gambling and, because it is neither backed by main authorities nor controlled, the cryptocurrency is not a safe financial investment.
Speaking to Newsnight, he continued:
” It is a very unstable asset in regards to its pricing … If you want to purchase bitcoin be prepared to lose your money– that would certainly be my severe warning.”
Bailey took place to say that “assets” like bitcoin are not regulated by financial watchdogs in the UNITED KINGDOM, and that it depended on parliament to pick any type of changes in those guidelines. Nevertheless, mentioning the current U.S. launch of bitcoin futures contracts by CBOE, he said: “If you purchase a future or if you acquire an option then we do come into the picture.”
The FCA’s supervisor of technique as well as competitors, Chris Woolard, addressed the very same subject back in June, cautioning financiers that, as cryptocurrencies are not managed monetary instruments, they do not have the consumer defenses related to conventional assets.
And also, in September, the authority likewise provided an official warning on first coin offerings (ICOs) mentioning that they constitute “very risky, speculative investments.”
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