FCA will not regulate bitcoin

The regulator said digital currencies fall outside of its regulatory powers.

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The City’s watchdog warned consumers that bitcoin and other cryptocurrencies have “no intrinsic value”, but added that these coins fall outside its regulatory powers.

The Financial Conduct Authority (FCA) will not regulate digital currencies or their exchanges as they fall outside its “regulatory perimeter”, the body said as it published its latest guidance on cryptocurrencies yesterday.

FCA executive director of strategy and competition Christopher Woolard said: “This is a small, complex and evolving market covering a broad range of activities.”

But the watchdog added: “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.”  

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