UK Regulator Warns Bitcoin Enthusiasts: ‘Be Ready To Lose All Your Money’December 15, 2017 8:33 pm
The chief executive of a British financial regulator had harsh words for investors of bitcoin in that they should be prepared to lose all their money on Friday, according to CoinDesk.
Andrew Bailey of the UK’s Financial Conduct Authority (FCA) told the BBC’s Newsnight program that purchasing the cryptocurrency is akin to gambling, since it’s not backed by a central government and is not regulated, which makes it an unsafe investment.
Baile said: “It is a very volatile commodity in terms of its pricing.”
“If you want to invest in bitcoin be prepared to lose your money – that would be my serious warning.”
Bailey said that “commodities” like the cryptocurrency bitcoin are not regulated by financial watchdogs in the UK and that it would be under the responsibility of parliament to change the rules concerning the regulation.
Bailley pointed to the US launch of bitcoin futures contracts by CBOE and said, “If you buy a future or if you buy an option then we do come into the picture.”
The FCA’s director of strategy and competition, Chris Woolard also warned against bitcoin in June earlier this year, citing the lack of regulation on cryptocurrencies compared to traditional financial instruments so they do not have the consumer protections associated with the traditional assets.
The FCA also issued a formal warning in September against Initial Coin Offerings (ICOs) which they called “very high-risk, speculative investments.”
–WN.com, Maureen Foody