Cryptoassets ‘have no intrinsic value,’ cautions UK financial watchdog

• The new rules are meant to assist companies to ascertain whether their assets fall under the existing rules.
• Bitcoin and related decentralized cryptos are not affected by the new regulations.

The Financial Conduct Authority as reported by FXStreet today released new guideline for regulating cryptocurrencies within its jurisdictions. The new rules are meant to assist companies to ascertain whether their assets fall under the existing rules.

“This will allow firms to have a better understanding of whether they need to be authorized and what they need to do to ensure they are compliant,” the watchdog said in a statement.”

Bitcoin and related decentralized cryptos are not affected by the new regulations and assets classification. However, anti-money policies still apply to them.

This release of the rules is a great step towards cryptocurrency regulations in the United Kingdom. However, the FCA still issued a warning to investors saying that they must be aware of the risks associated with the cryptoassets. Moreover, the regulator says that cryptos do not have intrinsic value.

“Consumers should be cautious when investing in such cryptoassets and should ensure they understand and can bear the risks involved with assets that have no intrinsic value,” the FCA wrote.