The FCA’s chairman, Charles Randell referred to the issues that face the cryptocurrency industry. He mentioned the speculative attribute of the industry and this displays an alternative to the UK’s plan to create a crypto ecosystem.
The country’s decision to create a crypto ecosystem for the international community came as a big surprise to the world. The statement came from Rishi Sunak, the state’s Chancellor of Exchequer.
The UK has shown its stand by agreeing with other nations in declaring that crypto is not trustworthy and needs to be controlled properly. The news that it wants to establish such a space for crypto in the country is surprising, to say the least.
Although the news is exciting, it is still faced with a lot of skepticism, as members of the state government are still in doubt. With the recent happenings, the world would be more concerned if they were able to completely absorb the idea.
Major Forces Warn Against Cryptocurrency
Major bodies showing their skepticism are Sir Jon Cunliffe and Charles Randell. Sir Cunliffe has stated that the crypto market can lead to the volatility of the country’s financial market. Randell who has been quite open on his stance against cryptocurrency finally voiced out on Friday. He voiced his thoughts in a speech released on Friday.
Randell referred to the lack of backing crypto has. He also mentioned that the masses should not be pushed to put their money into such assets. He further mentioned that the population of the world who have little to zero financial knowledge or are not wealthy should not have anything to do with crypto.
He pointed out the recent drop in the value of bitcoin and other coins that fell to zero. He also mentioned that the amount of regulation the watchdog would have to put in is very worrisome. He expressed his distaste towards the work that had to be done and the price it would cost.
Are Their Fears Valid?
With the recent issues that befell the crypto industry, there is no way to say their fears and skepticism are misplaced. Mr. Randell has all right to be worried due to the amount of revenue and other losses that can be suffered if such is to repeat itself.
Honestly, there is no good reason for small-scale investors to be involved in the crypto industry. Asides from their lack of major investments in the everyday financial market. This leads them to seek alternative investment options.
Right now the UK needs to decide where it stands on cryptocurrency, just beating around and being indecisive is not going to go well.