UK market watchdog proposes retail ban on Crypto-based byproducts

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UK market watchdog proposes retail ban on Crypto-based byproducts

On Wednesday, the 3rd of July 2019, Market watchdog of United Kingdom, Financial Conduct Authority (FCA) had recommended a ban on the sales of byproducts based entirely on crypto-assets or digital currencies, which would be effective as early as from January, 2020, as FCA had been contemplating the process of utilizing crypto-assets as a prevalence of market abuses.

Followed by the statement revealed later on Wednesday (July 3rd), FCA had been quoted saying that the prices or valuation of crypto-assets likes of Bitcoin and others alongside tokens of other tradeable digital assets were highly volatile and there had been a clear lack of investments required to make the byproduct assets of digital currencies financially viable.

Besides, the FCA said in a Wednesday’s (July 3rd) statement on its public consultation about the proposed ban, “FCA considers these products are ill-suited to retail consumers who cannot reliably assess the value and risks of derivatives or exchange traded notes (ETNs) that reference certain crypto-assets”.

As a matter of fact, latest proposed ban on digital currency-based assets came forth after the original crypto Bitcoin had surged more than 200 percent over the second quarter of 2019 out of the blue, while there had hardly been any news on mass adoption of crypto-based assets alongside investments except Facebook’s digital coin Libra, though the digital coin is unlikely to pass through a panel of US senates, which recently called Facebook to stall its crypto ventures amid worldwide scrutiny.