The UK Politicians Warns The Crypto Companies From Using The Words “Invest” And “Investments”. According to the head of FCA, the agency is looking for new powers for regulating crypto advertisement.
The members of parliament (MP) of the U.K. urged the Financial Conduct Authority(FCA). To control the usage of the word invest or investment by the crypto companies for promotions
According to Times, the parliamentarians at the treasury committee told FCA chief Nikhil Rathi on Thursday. That the use of the words “Your investment” often portrays these or on par with Financial Times Stock Exchange 100 companies or unit trust.
Also, Harriett Baldwin, a parliamentarian for West Worcestershire, stated that “the FCA’s list of unregistered businesses can be a barrier to the regulator’s anti-money laundering authorities.”
Words By The M.P. And J.P. Morgan Banker:
“Your website actually publishes the list of unregistered crypto-asset businesses for anti-money laundering purposes. It’sIt’s meant to be helpful, but it could also benefit someone who just wants to launder money.”
U.K’s Competent Authority The FCA:
When it comes to managing the affairs of money laundering risks appeared by crypto businesses. Then with complete assurance, the FCA is U.K competent Authority.
However, many of the regulators’ previous statements were not focused on financial crimes. Rather than priorities were consumers’ protection.
In addition to this, the FCA narrated that the customers must be prepared to lose all their money. If they select crypto for their investment platform. Also, Rathi repeated this stance again in September.
A few months back, The FCA said that the customers would not respond to the financial services compensation scheme. A compensation scheme handles fulfilling the loss if something goes wrong. But in the crypto investment cases, they have declared that they would not help anybody if they made any losses.
Lastly, during his discussion with M.P.s, he did not have the same energy for ditching investment language.
“Personally, I would suggest we simply say that anything crypto-related should not be titled to compensation so that customers are clear about that when they are investing”
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