Positive guidance from the Financial Conduct Authority (FCA) in the United Kingdom (UK) suggests that Bitcoin won’t be banned any time soon.
A report released this week indicates that the regulatory board has no intention of a comprehensive cryptocurrency ban.
While relatively positive, the report did offer strong language regarding the danger of investing in cryptocurrencies. It warned that consumers should be aware that the new asset class has ‘no intrinsic value’, saying that risk could be greater.
“Consumers should be cautious when investing in such crypto assets and should ensure they understand and compare the risks involved with assets that have no intrinsic value.”
No Good Words
While cautioning consumers, the FCA did offer a clear message in the language of the report. Far from banning cryptocurrencies, the report used crypto-friendly language and made clear that it would be the board with maximum regulatory control in the future.
Such language highlights an understanding that cryptocurrencies have moved out of the basement and dark web world and into the light. With regulatory boards giving clear guidance on cryptocurrency assets, it’s only a matter of time before market growth impacts the price of the coin.
Attention on Both Sides
The overall positive tone did leave open the possibility of increased regulatory control as well. The government made clear that it would offer substantial clarification on cryptocurrencies assets and markets.
At the same time, the report created substantial attention from the public sector regarding cryptocurrencies. With the installation of Boris Johnson as prime minister, and the new FCA guidance, searches for Bitcoin have spiked in recent weeks.
What’s more, the fears of Brexit fallout come October have drawn substantial attention as well. With little known about the ramifications of such an event, consumers have good reason to seek out new asset classes. Hedges against economic collapse are in increasingly high demand.
Whether the market continues to respond positively in the UK or not, the overall mood for cryptocurrency investors has been buoyant. Bitcoin has maintained its price above the critical support of $9,000, and lawmakers have moved increasingly toward cryptocurrency-friendly stances.
Will the UK will move forward with a positive position on Bitcoin and other cryptocurrencies, or will the regulatory climate become increasingly tight? Let us know in the comments below!