Director of UK financial authority warns risks in bitcoins trade

by saramago

One of the UK's leading financial regulatory authorities has issued a warning about cryptocoins, suggesting that the general public be very attentive to the amount of money that can be lost with the trading of cryptocoins.

Christopher Woolard, who is executive director for strategy and competition at the Financial Conduct Authority, offered his statements during an event held by the institution on blockchain technology, according to the Financial News website, pointing out that the risks are extremely high in the purchase and sale of bitcoins.

Woolard indicated that the volatility of digital coins is a negative factor, for example bitcoin, recently reached $ 3ooo dollars in price, but that in June last year the cryptocoin was worth less than a third of the current price; In addition, indicated that some users of the cryptocoin have the belief that digital coins are regulated like other financial assets, when the opposite is true.

Anyway, during the month of April of this year a document was published that reflects the organization's considerations about blockchain technology - in which they have more confidence than in the cryptocoins, since it is a tool that promises to change the banking and financial industry effectively. In consequence, it was announced that they would publish warnings and other documents on the web portal to prevent the public from the negative effects of the trading of cryptocoins. It will be until July 17 that comments and opinions from the public about this published paper will be received.

In addition to this, it was recently announced that investment and insurance firm Hargreaves Lansdown announced that it would start offering some of its services in bitcoin, being able to monitor the prices of the cryptocoins and its relation with its assets.

FCA is one of the world's most active regulators of financial technology legislation (FinTech), while London has been one of the most attractive places for such companies to establish their operations. According to an EY report, the UK has become the global capital of FinTech, a sector that generates gains of about £ 6.6 billion, attracting £ 524 million a year, providing employment to about 61,000 People, positioning itself next to important markets like Singapore, Hong Kong and Australia.

During the month of April last year, FCA granted an electronic money license to the US-based Circle company, which offers payment, remittance and bitcoin portfolios to operate in English territory. Also, the intention of the British government is to favor companies that develop blockchain technology, although, as Woolard said, it is a precaution.