Summary
- Nikhil Rathi, FCA Chief, reported that millions of young investors are investing in virtual assets without understanding the risks.
- He expressed a desire for investment in traditional financial markets instead of virtual assets, recognizing it as a high risk.
- 86% of virtual asset business registration applications were rejected, indicating the UK's strict regulations.
Nikhil Rathi, Chief of the Financial Conduct Authority (FCA) in the UK, stated in a meeting with lawmakers that "it is estimated that millions of Britons under the age of 35 are investing in virtual assets (cryptocurrencies) without fully understanding the risks," adding that "this is an activity that potentially carries very high risks. We hope that young people in the UK will invest in traditional financial markets such as stocks and bonds instead of virtual assets."
According to DL News, a virtual asset specialist media outlet, on the 26th (local time), he further mentioned that while some countries like the United States are easing regulations on virtual assets, the UK is still maintaining strict regulations, saying, "We are not anti-innovation," and "We are striving to make the UK an attractive financial hub."
He also added that "86% of companies applying for virtual asset business registration were rejected," noting that "this includes some of the world's largest companies, but they failed to meet the anti-money laundering (AML) standards. We are just doing what we have to do."
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
