Britain stops digital currency: risk is too big for small investors

Britain stops digital currency: risk is too big for small investors

According to the British "Guardian" report, the Financial Conduct Authority (FCA) has proposed to ban financial instruments related to digital currencies such as Bitcoin, and warned that individual investors may not understand the risks or values ​​of these tools, and may Will lead to huge losses.

FCA claims that derivatives such as derivatives or exchange-denominated bonds (ETNs) associated with encrypted assets are “not suitable” for small investors. These products are “very volatile” and are difficult to value. Their investors have low understanding of products and there is a growing risk of financial crimes that will hurt investors because of “sudden and unpredictable losses”. FCA also said that if these financial instruments are banned, it is expected to save consumers a loss of 75 million to 234.3 million pounds a year.

However, the Financial Conduct Authority of the United Kingdom has stopped the British “spreading coins” behavior, rather than the currency-linked Libra and other cryptocurrencies launched by Facebook.

South Korean media reported that Shinhan Bank, the second-largest financial group in South Korea's assets, even plans to monitor accounts related to cryptocurrency exchanges, so as to ban domestic anonymous cryptocurrency transactions.

It seems that the cryptocurrency has become a factor affecting the normal operation of investors and even financial institutions in some areas.