UK regulator’s official refers cryptocurrencies as financial innovation
Andrew Bailey, the chief official of UK’s Financial Conduct Authority has regarded cryptocurrencies as an innovation in financial domain. The official of the main regulatory body of the United Kingdom has attended on Tuesday, dated 11th September, its Annual Public Meeting. He has chosen this occasion to clarify that the risks associated with cryptocurrencies should be reduced while fostering its advantages.
He has made an optimal utilisation of the event by explicitly putting forward the risks that are present when the regulator’s operate. As per Bailey’s statement, one of the risks is the outcome of the ‘technological change and innovation’. FCA seeks to take initiatives that “firmly” give back up to the innovative plan while simultaneously opposing the dangers they may bring along.
The statement of the FCA official
In his opinion, “cryptoassets” are, indeed, vital in the financial domain. According to him, “A good example of this is crypto assets. We are keen to see the potential of their underlying technology, and do not rule out roles for cryptoassets themselves.”
He has also specified about the risk factors which “are evident too” mentioning the volatile nature of cryptocurrencies and the difficulty that investors encounter while adopting digital currencies. As per his statement, “We are working closely with the Treasury and Bank of England to assess these issues and come up with appropriate responses.”
At the event, he has also given a reference to “Cryptoassets Task Force”, a British governmental body. The declaration about the body was made in March, 2018. The group members involve the Bank of England, FCA and Her Majesty’s Treasure. The members unite to analyse the advantages and disadvantages of blockchain technology and virtual currencies. The first meeting of the task force was organised earlier in May to set the targets of comprehending the influence of cryptocurrencies in the societal parameters.
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