Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex  >  All News

News : Economy & Forex

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 
All NewsEconomyCurrencies / ForexCryptocurrenciesEconomic EventsPress releases

Bitcoin slump takes pressure off Britain's regulators

share with twitter share with LinkedIn share with facebook
share via e-mail
0
11/20/2018 | 02:19pm CET
FILE PHOTO: A collection of Bitcoin (virtual currency) tokens are displayed in this picture illustration

LONDON (Reuters) - A plunge in the value of bitcoin and other cryptoassets has eased the pressure on Britain's financial watchdog to take radical action that could deter investment and financial innovation, government officials and regulators said on Tuesday.



The rapid growth in bitcoin and other initial coin offerings last year prompted regulators and central bankers around the world to take a closer look at the sector.

But a fall in the value of cryptoassets over the past year as investors lose interest, and a drop in bitcoin, which fell as much as 10 percent on Tuesday to below $4,500, has eased the pressure to issue tough new rules.

British regulators and government officials told a conference they were focused on how 2,000 or more cryptoassets slot into existing rules before considering reforms.

"We want to take the time to look at that in a bit more depth and make sure we take a proportionate approach," Gillian Dorner, deputy director for financial services at Britain's finance ministry, told a City & Financial conference.

Britain faces the challenge of balancing an innovative economy with maintaining consumer protection, stable markets and thwarting financial crime, she said.

Christopher Woolard, executive director for strategy and competition at the Financial Conduct Authority, said there is a need to clarify "grey edges" around the existing regulatory perimeter.

The FCA will consult by the end of this year on where the perimeter lies for cryptoassets, he said.

"This will help clarify which cryptoassets fall within the FCA's existing regulatory perimeter, and those cryptoassets that fall outside."

The finance ministry would then consult on whether the perimeter itself needed shifting, he added.

A task force of the finance ministry, FCA and Bank of England last month recommended a ban on the sale to retail customers of derivatives products linked to cryptoassets.

But Woolard said unilateral action by just one country had its limits, and the FCA will seek to work collaboratively with international counterparts.

Global regulatory bodies have so far been unable to reach a consensus on rule changes and have instead opted to monitor the sector more closely.

 

 

(Reporting by Huw Jones, editing by Louise Heavens)

By Huw Jones

Stocks mentioned in the article
ChangeLast1st jan.
BITCOIN - EURO 0.72% 2930.9307 End-of-day quote.-73.36%
BITCOIN - UNITED STATES DOLLAR 0.14% 3318.2396 End-of-day quote.-74.44%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news "Economy & Forex"
09:39aOil falls on China economic data, output cuts support
RE
09:38aOil falls on China economic data, output cuts support
RE
09:38aOil falls on China economic data, output cuts support
RE
09:37aGerman private sector growth hits four-year low in December - PMI
RE
09:36aChina's consumers, factories take a beating as economic gloom deepens
RE
09:35aChina's consumers, factories take a beating as economic gloom deepens
RE
09:35aLUIS DE GUINDOS : Redesigning Europe’s financial landscape
PU
09:35aROMANIA : Investment Plan for Europe - EIB supports expansion of digital terrestrial TV broadcasting network across Romania
PU
09:24aECB calls for European supervision of funds
RE
09:23aProtests plunge French business activity into contraction - PMI
RE
Latest news "Economy & Forex"
Advertisement