The UK’s Financial Conduct Authority has warned CEO’s of banks about the risks they could face in regards to cryptocurrencies.
Roughly 58,000 companies within the finance space were issued with this crypto warning.
This wouldn’t be the first time the FCA has taken similar action. What makes this time different, though, is that this is the first time they have reached directly out to banks. They have suggested that banks take more control over customer activities relating to cryptocurrencies.
The FCA has made an acknowledgment that not all customers are a risk. However, the FCA has given banks a set of guidelines which can be helpful for both business and retail customers.
The authority argues that banks should look at their clients with a more critical and detailed eye when working with clients relating to crypto. The FCA believes that this would minimise the risks involved. The FCA also has ensured that all financial crime guidelines work alongside crypto-related activities.
The FCA letter to these banks stated that cryptocurrencies have a list of safety issues, as the years go on and crypto becomes more popular, the more these financial regulators will understand cryptocurrencies.
A good sign is that the FCA has made clear the difference between high-risk investors and those who aren’t. It is now clear that not all crypto investments are fraudulent. The FCA is doing all they can for the British finance sector to understand cryptocurrency the best before it develops something bigger.