UK Financial Conduct Authority says that cryptocurrencies assets such as Bitcoin have no intrinsic value

The recent, Facebook Libra virtual currency project caused more controversy, the UK Financial Conduct Authority also issued new guidance documents. Strictly speaking, the Libra project is not a virtual currency at all, but a certain digital circulation constructed by blockchain technology and platform is different from Bitcoin. But after all, Libra was launched, so many regulators reacted very strongly. Even many regulators have directly indicated that they do not accept Libra.

“Bitcoin vs. Ethereum” by QuoteInspector is licensed under CC BY-ND 2.0

The UK Financial Conduct Authority said in its latest guidance document that the agency does not believe in the intrinsic value of crypto assets like bitcoin trading. At the same time, the agency also said that consumers should be aware of the risks in the virtual currency market and that such virtual assets are not regulated. This means that the financial services compensation plan will not bear the losses caused by virtual currency assets. This compensation plan was originally used to pay financial compensation.

The UK Financial Conduct Authority also said existing rules did not apply to bitcoin and other tokens such as the second-biggest coin ethereum, or to firms like exchanges and trading platforms.

Via: Reuters