British politicians have informed the Financial Conduct Authority that Bitcoin and other cryptocurrencies are not investments. So let’s see what this means today in the latest Bitcoin news.
MPs and British politicians told FCA chief Nikhil Rati that cryptocurrency is not an investment and the words “invest and invest” should not be used in context when referring to this property. Harriet Baldwin A Conservative MP for West Worcestershire said:
“The words ‘your investment’ support the idea that it is an investment comparable to a company or trust under the FTSE-100.”
Baldwin went even further, claiming that the UK FCA’s list of unregistered crypto companies could become an obstacle to the regulator’s anti-money laundering rules. The MP added:
“Your website actually publishes a list of unregistered anti-money laundering companies. This is supposed to be helpful, but it can also be helpful for people who just want to launder money. “
The FCA is the UK body that monitors money laundering problems of cryptocurrency companies. However, many of the regulator’s statements over the past year have focused less on financial crime and more on consumer protection. Earlier this year, the FCA said that consumers should be willing to lose money when investing in cryptocurrencies, but Rethi reiterated its position in September on losses if something goes wrong and if a loss occurs in cryptocurrencies.
Rati highlighted this in a conversation with MPs, but he doesn’t seem interested in removing the investment language:
“Personally, I would advise us to just say that everything related to cryptocurrency is not compensated so that consumers understand when they are investing. We will discuss what the wording should be. “
As recently reported, the UK FCA is investing £ 500,000 to train its staff and external consultants to understand the common money laundering and terrorist financing risks in the cryptocurrency industry. FCA will spend a lot on these advisors due to serious concerns that the cryptocurrency is being used by attackers.