People investing in cryptocurrencies would possibly “lose all their money,” Britain’s monetary regulator said Monday, as Bitcoin’s volatile value increased from a record high of nearly $42,000.
The unexpected accumulation in Bitcoin of more than 300% over the following year has attracted the attention of public and institutional investors. But cryptocurrency is very volatile; From Friday to Monday, it fell about 15%, from a record point of about $41,800 to $34,645.
The cryptocurrency has also attracted the attention of monetary regulators around the world, who are concerned that amateur investors will be absorbed and that cryptocurrencies like Bitcoin will collapse, as Bitcoin did in 2018.
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The supervisory body expressed fear that some corporations would offer investments or similar to cryptocurrencies while seeking to capitalize on the uptick.
“Significant volatility in crypto asset prices, combined with the difficulties inherent in reliable valuation of cryptoactives, exposes consumers to a great threat of losses,” he said.
He added that “the complexity of some crypto-related products can make it difficult for consumers to perceive risks. “
Memories of the value of bitcoin crumble from the expiration of 2017 to early 2019, when it went from about $20,000 to less than $4,000, are weighing on regulators.
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The FCA also noted that cryptocurrencies like Bitcoin are largely unregulated and said investors probably wouldn’t stay on payments or in court cases “if something goes wrong. “
Regulators must tighten cryptocurrency regulations. Since Sunday, the FCA has demanded that all cryptocurrency corporations in the UK register with it as part of regulations designed to combat cash laundering.
Twitter CEO Jack Dorsey, who also runs the payments company Square, is among the critics of the idea, suggesting that the unregulated nature of cryptocurrencies is one of the market’s top attractions.
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