UK FCA Advises Banks On Handling Crypto Asset Risks
UK FCA Advises Banks UK financial regulator has written to the heads of banking institutions in the country on how to handle and mitigate the financial crime risks posed by cryptocurrencies such as Bitcoin or Ether as well as related products. The Financial Conduct Authority (FCA) said there are many non-criminal motives for using crypto assets, but these also pose risks as it offers potential anonymity and the ability to move money between countries.
UK FCA Advises Banks
In the statement, the financial regulator also stressed the non-criminal motives for using cryptocurrencies, including funding “innovative technological development” and high-risk “speculative investments.” However, taking into account the globality and anonymity of crypto, the FCA suggested a couple of "high-risk" indicators, such as clients using a state-issued cryptocurrency and possessing large amounts of initial coin offering (ICO) tokens.
The FCA explained that the risk of using a state-sponsored cryptocurrency is that it is “designed to evade international financial sanctions.” Considering the risks associated with ICOs, the regulator stated that this kind of practice involves a “heightened risk of falling victim to investment fraud.”
In late December 2017, when Bitcoin (BTC) was hitting record prices, the FCA warned investors about the risks of losing all their money, claiming that Bitcoin is a bubble, and an “odd” commodity, citing its scarcity.
Latest posts by JADIRI GAMER (see all)
- Leaders needed for epic battles in Circle Empires Rivals Open Beta! - January 24, 2020
- Virtual Reality Puzzler Squishies heading to Steam on January 24th - January 24, 2020
- T-Rex Interactive announced a release date for the “Box Kid Adventures”. They also showed a new trailer and screenshots. - January 24, 2020