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  • British MPs asked the regulator to redouble efforts and stop bad practices in cryptocurrency segment.
  • The top governmental official said that there are no plans to recognize cryptocurrencies.

British politicians are urging regulators to tighten the approach towards cryptocurrency and blockchain-based assets trading as some investors are ill-protected from all sort risks including hacking, money laundering, and volatile prices; moreover, many traders and investors are not aware of the risks associated with these instruments.  

The Treasury Committee published a new report, stating that “wild west world of cryptocurrencies should be regulated.”
“Bitcoin and other crypto-assets exist in the wild west industry of crypto-assets. This unregulated industry leaves investors facing numerous risks,” Treasury Committee chairman Nicky Morgan commented
“Given the high price volatility, the hacking vulnerability of exchanges and the potential role in money laundering, the Treasury Committee strongly believes that regulation should be introduced.”

According to the Committee, the steps taken by the Financial Conduct Authority (FCA) to inform consumers of the risks were not enough, considering the extensive advertising for crypto investments. The regulator should take up the responsibility for overseeing crypto asset markets.

“The FCA needs more power to control how crypto-exchanges and ICO issuers market their services, by bringing the activities they perform into the regulatory perimeter,” MPs said.

In a separate report, HM Treasury’s Economic Secretary, John Glen, stated that the government had no intentions to recognize cryptos as a legal tender or to make them official financial instruments.
Moreover, the government does not evaluate any potential effects of the falling cryptocurrency value on the UK economy and blockchain industry.

“The Government has not made a formal assessment of any potential implications of recent changes in the value of cryptocurrencies. However, the Government continues to monitor developments in the cryptocurrency market,” according to Lord Bates, Minister of State at the Department for International Development.

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