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Charles Randell, Chair of the Financial Conduct Authority, lays out the risks of cryptocurrencies as well as three ways that regulators can keep investors safe.
Charles Randell, Chair of the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA), delivered an address at the Cambridge International Symposium on Economic Crime where he outlined the challenges and risks involved in regulating cryptocurrencies.
“These tokens have only been around for a few years, so we haven’t seen what will happen over a full financial cycle. We simply don’t know when or how this story will end, but—as with any new speculation—it may not end well,” he said today.
He reiterated that speculative cryptocurrencies are not regulated by the FCA, and therefore, consumers are not covered or protected by the Financial Services Compensation Scheme, a scheme that compensates consumers in the event of failing businesses.
“It’s difficult for regulators around the world to stand by and watch people, sometimes very vulnerable people, putting their financial futures in jeopardy, based on disinformation and fear of missing out,” Randell added.
The solution—he suggests—is for regulators facing down the crypto industry to focus on three primary issues.
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