UK Lawmakers Call For More Regulations on Crypto
September 19, 2018 4:05 pm
According to the reports, U.K lawmakers have called for more oversight and regulation on the cryptocurrency industry. The lawmakers have stated that cryptocurrencies don’t have any inherent value. They are very risky for retail investors.
The lawmakers think that digital currencies are vulnerable to manipulation. The report also states that the introduction of regulation [to the cryptocurrency space] must be treated as a matter of urgency. Seven months back, the U.K. Treasury Committee announced that it would look into the advantages and risks associated with crypto.
The lawmakers’ team wants the Financial Conduct Authority (FCA), the U.K.’s top financial body to regulate the crypto markets. The report describes that organizers of initial coin offerings (ICOs) can use certain loopholes to avoid scrutiny from the agency.
The report stated that apart from paying attention to the risks, FCA can protect individuals from being defrauded or losing their money. Because most of the ICOs doesn’t promise financial returns. These ICOs offer future access to a service or utility. This means they would fall outside the regulatory perimeter.
The lawmakers included:
“While there may be no explicit promise of financial returns, investors in ICOs clearly expect them: they are not buying tokens to gain access to as-yet unbuilt theme parks, or to obtain dental services in years to come, but in the hope of selling them at a profit. The development of ICOs has exposed a regulatory loophole that is being exploited to the detriment of ordinary investors.”