The Financial Conduct Authority is to gain power over unauthorised cryptoasset firms.
In Brief:
-
The Treasury has said the current protections for investors in some cryptoassets are insufficient.
-
Certain types of assets will be brought under FCA regulation.
-
The current framework is insufficient due to the “variety and vast quantity” of products on offer, says the Treasury.
What does this mean?
The aim is to protect consumers as more and more are dipping their toes into the world of investing, spurred on by the popularity of certain cryptocurrencies. Economic Secretary to the Treasury John Glen commented: “If adverts by unauthorised firms are misleading, or don’t fully outline the risks, then people can end up losing money.”
