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Bitcoin [BTC] and other cryptocurrencies don’t pose a risk but it is important to be vigilant, says FCA Board member

Akashnath

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Bitcoin [BTC] and other cryptocurrencies don't pose a risk but it is important to be vigilant, says FCA Board member
Source: Pixabay

Speaking at the Regulation of Cryptocurrencies event, London, Christopher Woolard, Executive Director of Strategy and Competition at the Financial Conduct Authority [FCA], identified the major risks associated with crypto assets, and outlined the options to tackle the threats.

Following significant adoption increase in recent years, the Taskforce has brought together Her Majesty’s Treasury [HMT], the Bank of England, and the FCA, to explore the impact of Distributed Ledger Technology [DLT] and crypto assets on financial services, he said. Refering to the harms that crypto assets could bring “to consumers, to market integrity and the risk of financial crime”, Woolard stated:

“The FCA, HM Treasury and the Bank of England are each taking a number of steps over the coming months to address these harms and to encourage future beneficial innovation.”

Furthermore, Woolard said that it is very likely that UK businesses and consumers will use crypto assets in increased numbers. He added that there are benefits to this, but equally there are risks involved, and set forth a plan on how to tackle risks and minimise harm to consumers. Handling these risks will include adopting domestic regulations, as well as international cooperation, he stated.

He noted that crypto assets demonstrate a benefit by making existing processes like international money remittance and issuance of debt instruments, cheaper and easier. He went on to say that although he and the Financial Stability Board do not view crypto assets as a risk, it is vital to remain vigilant.

The FCA’s first plan of action is to find which tokens fall within their regulatory perimeter, Woolard said. Her Majesty’s Treasury will then assess if an extension of regulations is necessary to encapsulate crypto assets with features comparable to securities.

According to him, there is also a concern that the consumer buys a derivative product based on an exchange token with market integrity issues, like volatility and complexity. To tackle this, he stated, FCA will consult and decide whether the said crypto asset’s derivatives [options, futures and transferable securities] may be sold.

He said:

“To combat financial crime risks, the Treasury will undertake one of the most comprehensive responses globally to the use of cryptoassets for illicit activities by applying and going further than the existing directive, the fifth EU Anti-Money Laundering Directive (5AMLD)”

He further added that the Treasury is looking to apply, and broaden the scope of, 5AMLD, and counter-terrorism financing regulations. HMT will consult in early 2019 on whether and how exchange tokens, as well as related actors such as exchanges and wallet providers, could be regulated effectively, he said.

Woolard concluded that the goal of the Taskforce is to ward off risks, combat financial crime, safeguard market integrity and ensure consumers are insulated from harm.

 




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A fourth year engineering student at SASTRA, working freelance at AMBCrypto. Writing and football are passions, and cryptos are an avid interest.

Ripple

David Schwartz of Ripple projects views on tribal behavior of crypto-industry

Priyamvada Singh

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David Schwartz of Ripple projects views on tribal behavior of crypto-industry
Source: Pixabay

In a recent podcast by Internet History Podcast, the Chief Technology Officer at Ripple, David Schwartz discussed the tribal nature that surrounds the cryptocurrency and blockchain space. Here, he addressed the issue as unfortunate and stated that the members of the space must understand that working together and in sync is significant to moving forward. In his words:

“They’re very much like religious battles. You have influential people who are committed to a position that like one digital asset is the best and they can’t acknowledge any of the strengths of others or the weaknesses of their own, which makes it difficult for people to make good decisions about you know which assets to use or what to use them for.”

He switched the subject to the workings of Ripple, wherein he explained that the company is focused on the use case of global payments but is also excited to see innovation in the space. Furthermore, he stated that he expects to see the XRP ledger be used in different sectors of innovation, moving beyond payments.

About tribalism, he said that there are certain social media platforms that fuel the trait, such as Twitter, mentioning the trend as hostile. He also said:

“Tribalism, it’s chasing a lot of people out of the space because of some platforms, particularly Twitter, is just extremely hostile and I think we need to fix that. Again, if the crypto markets are sending us any signals is that we’re all in this together and we need to work together to grow.”

The tribalism that he is referring to is evident in the space as the maximalists continue to promote their respective choice of coin while dissing every other token. This has also been observed in the Bitcoin ecosystem, wherein maximalists like Roger Ver and Tone Vays are involved.


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Altcoins

Tron [TRX] energy cost to be reduced from 20 sun to 10 sun

Priya

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Tron [TRX] energy cost to be reduced from 20 sun to 10 sun
Source: Unsplash

The whole cryptocurrency market has been witnessing a steep downward trend for the past couple of weeks. Even the major cryptocurrency like Bitcoin [BTC], Ethereum [ETH] and XRP, have lost the battle against the ice king. This negative trend has broken down most of the new projects in the market, especially the investors’ sentiments. There are also a few projects and team that are finding it hard to continue their operations because of the bear’s ever-growing presence.

Despite this, Tron [TRX], the tenth-largest cryptocurrency by market cap, continues to make advancements in terms of network development. Justin Sun, the founder and CEO of Tron Foundation presented the second proposal, Proposal 9, has been approved by 2/3rd of the governing body. The proposal is aimed at making the network a developer friendly environment by reducing the energy cost from 20 sun to 10 sun, which, in turn, reduces the cost of smart contact.

Justin Sun's tweet on the proposal | Source: Twitter

Justin Sun’s tweet on the proposal | Source: Twitter

At the time of writing, the proposal had received 22 approvals and no disapprovals. The representatives who voted for the proposal includes Justin Sun Tron, Tron Society, BitGuild, Tron One, Lianjinshu, uTorrent, Crypto Guy in ZA, Infinity Stones, Alle Exchange, Tron Alliance, TronWalletMe, Raybo Tron, BitTorrent, Blockchain Org, CryptoChain, Sesameseed, callmeSR, DApp House, Tron Spark, TRX Market, Sky people, and Tron Europe.

The first proposal of the month was related to maximizing the energy limit of the network, which was also aimed at supporting the developers of the ecosystem. The proposal was approved by all 28 Super Representatives of the network. Super Representative are the representatives of the community and validators of the node who are elected by the token holders. These representatives are given the power to vote for the activation of the features of the Tron Virtual Machine, with the focus on the betterment of the entire community.

Earlier today, the CEO of the Foundation spoke about how Tron surpassed Stellar Lumens, the fourth largest cryptocurrency by market cap. He said on Twitter:

“According to @CoinMarketCap, there are 159 trading pairs of #TRON which already surpassed 157 trading pairs of Stellar. #TRX was already listed on more than 100 exchanges, including Crypto/Crypto & Crypto/ Fiat trading pairs”


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