FCA Chief Executive Bitcoin warning: Be ready to lose your money


Joining the string of global regulatory warnings, FCA Chief Executive Bitcoin warning comes the latest. Yet, it appears that the caution does not have much effect on the price of Bitcoin. Should you be concerned?

15 December, AtoZForex It appears that the Chief of the Financial Conduct Authority (FCA) is not a fan of Bitcoin. In fact, it would be appropriate to say that he does not support investment in Bitcoin. During one of his latest public appearances, Andrew Bailey has stated: “If you want to invest in bitcoin, be prepared to lose all your money.”

FCA Chief Executive Bitcoin warning

The Chief executive of the FCA has issued a warning in regards to Bitcoin. He has highlighted that FCA did not set any regulation for this cryptocurrency. He stated that the UK watchdog has certain regulations in place that cover particular financial instruments Bitcoin refers to.

Mr. Bailey stated that Bitcoin, technically, a commodity rather than a fiat currency that has support from a central bank. Yet, despite the growing concerns about the cryptocurrency market, Bailey has stated:

“I don’t think bitcoin is prevalent enough to be a systemic threat.”

Some of the key worries that appear to be bothering global regulators are the lack of transparency and pricing volatility of Bitcoin.

Chief executive of CBOE on Bitcoin

The remarks from Mr. Bailey come just some days after CBOE has launched Bitcoin Futures contracts trading this Sunday. January Bitcoin futures contract on the Chicago-based CBOE Futures Exchange has spiked past $17,000 on Monday. Remarkably, this was just the first day of trading.

The front-month contract has opened at $15,460 in New York yesterday evening, just to surge to the high of $17,170 during the Asian session. The futures contracts have posted $17,120, which accounts for more than a $1,000 premium to the price on Gemini exchange.

Ed Tilly, the chief executive of CBOE, has commented on the launch:

“We’re not endorsing bitcoin, but what we wanted to do was bring transparency to an industry where there was interest.”

Aside from the overall positivism around the Bitcoin rally, many investors are being cautious. Some experts have been expressing concerns over the fact that the supply of Bitcoins is finite. Moreover, the lack of Bitcoin “tangibility” also worries some of the industry insiders.

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