Financial watchdog from UK says it needs to control crypto promotions

Setting up a regulatory regime for the decentralised world of crypto assets will initiate precautions for Britain’s Financial Conduct Authority (FCA). Britain’s finance ministry has already talked publicly on whether some crypto asset needs regulations.“There are no assets or real world cashflows underpinning the price of speculative digital tokens, even the better-known ones like Bitcoin, and many cannot even boast a scarcity value,” FCA Chair Charles Randell spoke in a speech. “We simply don’t know when or how this story will end, but as with any new speculation it may not end well.” According to him there are two cases where regulators should have powers to take action so there would be less harm from crypto asset promotions and to stop contagion at authorised firms from unregulated tasks in digital tokens. The FCA banned global crypto exchange Binance from taking over any activity in Britain as it doesn’t hold the power to be supervised carefully and set out different requirements on the company. Binance has said it entirely agrees with the FCAs requirements.
“We, are not going to award FCA registration or authorisation to businesses which wont explain basic issues, such as who is responsible for key functions or how they are organised,” he said. “That would be token regulation in the worst sense.” The global Basel committee of banking regulators are having a conversation about whether holdings by bank of speculative digital tokens should be covered by mandatory full capital charges.