UK FCA Has The Potential To Prohibit The Sale Of Cryptocurrency Derivatives
The government’s working group on blockchain, which consists of employees of the Bank of England and the local regulator, proposed to limit trade in secondary securities
The new regulatory structure of the blockchain industry was proposed by the working group of the UK government on cryptocurrencies. Representatives of the Department showed a structure that involves several types of digital assets — cryptocurrencies that are used for exchange, for investments and tokens that are used in ICO.
Digital money cannot be recognized as a means of payment due to high volatility, low liquidity and the fact that it is difficult to track. Representatives of the working group stressed that, in the future, these assets would make it possible to conduct cheaper and more efficient transactions by eliminating intermediaries.
At the moment, cryptocurrencies carry serious risks for investors, as well as they are used in illegal activities, the report says. It is also reported that ICO can provide opportunities for more effective fundraising.
The working group has developed rules for advertising digital assets. Information should not mask or reduce their capabilities.