RATE Group | Cryptocurrencies have ‘no intrinsic value’, warns FCA
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Cryptocurrencies have ‘no intrinsic value’, warns FCA

01 Aug Cryptocurrencies have ‘no intrinsic value’, warns FCA

Posted at 04:24h in Cryptocurrency News by

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Investors should be cautious over cryptocurrencies such as Bitcoin as they have “no intrinsic value”, the City regulator has warned.

In a statement released today, the Financial Conduct Authority (FCA) said consumers must ensure they understand and can bear the risks of volatile digital currencies.

Read more: US senators grill top exec over Facebook’s Libra cryptocurrency

The FCA warned that most cryptocurrencies are unregulated and are not covered by the Financial Services Compensation Scheme, which is designed to protect customers when financial services firms collapse.

“A combination of market immaturity, volatility, and a lack of credible information or oversight raises concerns about market integrity, manipulation and insider dealing within cryptoasset markets,” the regulator said.

The comments came in a clarification on the FCA’s previous guidance, which prompted almost 100 responses from across the financial services sector.

The FCA…

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