BTC

$98657.322

0.56%

ETH

$3337.029

0.42%

BNB

$648.563

2.56%

XRP

$1.579

16.87%

Market

British politicians said FCA Bitcoin is not an investment: report

December 9, 2021 - Around 2 mins mins to read

British politicians, fca, investments, rathi, bitcoin

British politicians have informed the Financial Conduct Authority that Bitcoin and other cryptocurrencies are not an investment. So let’s see what this means in the latest bitcoin news today.

MPs and UK politicians have told FCA chief Nikhil Rathi that cryptocurrency is not an investment and the words “invest and invest” should not be used in context when talking about these properties. Harriet BaldwinThe Conservative MP from West Worcestershire said:

“The words ‘your investment’ validate the idea that this is an investment that is comparable to an FTSE-100 company or trust.”

Baldwin went further, stating that the British FCA’s list of unregistered crypto companies could be an obstacle to the regulator’s anti-money laundering rules. The MP added:

“Your website actually publishes a list of unregistered crypto asset companies for anti money laundering purposes. It’s supposed to be useful, but it can also be useful for people who just want to launder money. “

The FCA is the UK authority when it comes to monitoring money laundering problems of crypto companies. However, many of the regulatory authority’s statements over the past year did not focus on financial crime, but more on consumer protection. Earlier in the year, the FCA said consumers should be ready to lose money when investing in cryptocurrencies, but Rethi reiterated its stance in September on loss if things go wrong and if the loss occurs in cryptocurrencies.

Rathi highlighted this in a discussion with MPs, but he doesn’t seem interested in removing the investment language:

“Personally, I would suggest that we just say that anything cryptocurrency related is not compensated so that consumers understand when they invest. We will have a discussion of what the wording should be. “

As recently reported, the UK’s FCA is investing £ 500,000 to train its staff and outside advisors to understand the common risks of money laundering and terrorist financing in the cryptocurrency industry. The FCA will spend a lot on these advisors due to major concerns that the cryptocurrency is being used by malicious actors.

Avatar of Annie

Author

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.
Market

British politicians said FCA Bitcoin is not an investment: report

British politicians, fca, investments, rathi, bitcoin

British politicians have informed the Financial Conduct Authority that Bitcoin and other cryptocurrencies are not an investment. So let’s see what this means in the latest bitcoin news today.

MPs and UK politicians have told FCA chief Nikhil Rathi that cryptocurrency is not an investment and the words “invest and invest” should not be used in context when talking about these properties. Harriet BaldwinThe Conservative MP from West Worcestershire said:

“The words ‘your investment’ validate the idea that this is an investment that is comparable to an FTSE-100 company or trust.”

Baldwin went further, stating that the British FCA’s list of unregistered crypto companies could be an obstacle to the regulator’s anti-money laundering rules. The MP added:

“Your website actually publishes a list of unregistered crypto asset companies for anti money laundering purposes. It’s supposed to be useful, but it can also be useful for people who just want to launder money. “

The FCA is the UK authority when it comes to monitoring money laundering problems of crypto companies. However, many of the regulatory authority’s statements over the past year did not focus on financial crime, but more on consumer protection. Earlier in the year, the FCA said consumers should be ready to lose money when investing in cryptocurrencies, but Rethi reiterated its stance in September on loss if things go wrong and if the loss occurs in cryptocurrencies.

Rathi highlighted this in a discussion with MPs, but he doesn’t seem interested in removing the investment language:

“Personally, I would suggest that we just say that anything cryptocurrency related is not compensated so that consumers understand when they invest. We will have a discussion of what the wording should be. “

As recently reported, the UK’s FCA is investing £ 500,000 to train its staff and outside advisors to understand the common risks of money laundering and terrorist financing in the cryptocurrency industry. The FCA will spend a lot on these advisors due to major concerns that the cryptocurrency is being used by malicious actors.

Leave a Reply