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The chairman of the UK Financial Conduct Authority (FCA) questioned the legality of digital assets. In his opinion, they have no intrinsic value.
Charles Randell (Charles Randell) announced Britain’s intention to become one of the world leaders in technology and innovation. In April, officials from the Ministry of Economy and Finance announced their intention to amend the legislation, according to which stablecoins could become an acceptable form of payment. Randall acknowledged that stablecoins, when pegged to state currencies, can have some value. However, Randall called the rest of the crypto assets useless tools of market speculation:
“Should people be encouraged to believe in cryptocurrency investments? The bitcoin rate can easily collapse by half in just six months, as it happened recently, and some speculative crypto assets fall to zero … Should we even allow people who don’t have a lot of savings or financial experience to buy crypto assets?”
At the same time, the head of the FCA believes that the British government should not compensate for the losses of investors investing in cryptocurrencies. Users should be responsible for their own actions and be more aware of the risks associated with investing in digital assets. Randall also criticized celebrities investing in tokens and cryptocurrencies, saying that their statements can seriously harm the material condition of ordinary people. According to Morning Consult, 45% of investors are ready to buy digital assets advertised by famous personalities.
Randall’s words sounded against the background of the collapse of the Terra project due to the collapse of the course of the algorithmic stablecoin UST and the LUNA coin, as well as a serious decline in the cryptocurrency market as a whole. Recently, FCA Executive Director Sarah Pritchard (Sarah Pritchard) said that the regulator will take these developments into account when developing regulatory rules to regulate the industry.
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