UK Markets Regulator Warns of Dangers of Unregulated Cryptocurrencies

Britain’s markets watchdog said on Wednesday that bitcoin and other cryptocurrencies have no intrinsic value and offer consumers few protections, but added that such coins fall outside the scope of its powers.

The Financial Conduct Authority said crypto markets were highly dysfunctional, with the onus on consumers to understand the risks associated with investing in unregulated assets.

“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 FCA said in a statement.

Despite those flaws, the FCA said existing rules did not apply to bitcoin and other tokens such as second-biggest coin ethereum, or to firms like exchanges and trading platforms.

The watchdog was laying out which aspects of the nascent crypto industry it regulates — a milestone in Britain’s regulation of a sector that still forms a tiny part of the broader…