Bitcoin has become legal tender in El Salvador, with the aim of boosting its economy although analysts warn of a negative impact. Photo: Marvin Recinos AFP via GettyEl Salvador has become the first country in the world to make bitcoin (BTC-USD) legal tender. The world’s largest cryptocurrency is now formally part of the nation’s economy following an announcement made by president Nayib Bukele’s government earlier in June.The development comes amid protest and uncertainty as questions remain about bitcoin’s integration into the country’s financial system and general access to the new technology among Salvadorans where 32.7% of the population remains below the poverty line. Furthermore, only 58% of the population have access to the internet, which is necessary for bitcoin transactions.Now that the law has come into effect every Salvadoran will soon be offered a government-run digital wallet containing $30 (£21.70) worth of bitcoin. This “Chivo Wallet” will be “easy to use,” according to a statement from the legal adviser to the Salvadoran president, Javier Argueta. The official added that the government “will promote the necessary training and mechanisms so that the population can access transactions in bitcoin.”Read more: FCA issues fresh warning on ‘pump and dump’ crypto scamsPresident Bukele’s administration has been keen to address concerns about article 7 of the new law, which stipulates that acceptance of bitcoin as payment is compulsory. However, in late August, his spokesman Ernesto Sanabria told CoinDesk that “the president has been clear in saying that the use of bitcoin is not mandatory.” Argueta has also reassured Salvadorans that, “the state will provide alternatives that allow the user to carry out transactions in bitcoin, as well as having automatic and instant convertibility from bitcoin to dollar if desired.”  A protest against the Bitcoin law in San Salvador, El Salvador. Photo: Camilo Freedman/Aphotografia/GettyAnother major concern among Salvadorans is that the law could eventually evolve to see salaries being paid in the cryptocurrency. However, the Salvadoran government in an official statement has said it will “guarantee that salaries, pensions and accounting operations will continue to be applied in dollars as the reference currency.”Story continuesRegardless of Bukele’s reassurances, there remains a high degree of suspicion within El Salvador that the law has a hidden agenda. One attendee at a ‘No Al Bitcoin’ (No to Bitcoin) protest outside the legislative assembly in San Salvador articulated a common sentiment that “there must be something else behind this, I think it’s a scam for money laundering and will make us a tax haven for Bitcoin millionaires.” However, Argueta, the president’s legal adviser, has dismissed these concerns as “disinformation generated by groups that are not from civil society” and “hinder what benefits the population.”Two surveys reveal the level of distrust within El Salvador towards the new law. A poll of 1,233 people run by Disruptiva at the beginning of July revealed that two-thirds of participants were not willing to be paid in Bitcoin. Read more: Bitcoin price surges even as SEC says crypto platforms need regulationA more recent study conducted in late August by El Salvador’s University of Central America (UCA) revealed a high level of negative sentiment towards the bitcoin law. The survey found that 80% of 1,281 people polled had no trust in bitcoin and only 17% think it will improve the economy.Suspicion of authority runs deep in El Salvador — a legacy of the nation’s 12-year civil war. The two main political factions, the leftist FMLN and the right-wing ARENA party are in an unusual agreement in their mutual opposition to the bitcoin Law. However, the president’s own party, Nuevas Ideas, has yet to break ranks with their leader.Argueta stated in June that El Salvador … was “now in the eyes of many investors in the world.” He added that “other nations such as Argentina and Uruguay have expressed their interest in analysing the bitcoin law to approve it.”  Many Salvadorans think that the move is a ‘scam for money laundering and will make us a tax haven for Bitcoin millionaires.’ Photo: Camilo Freedman/Aphotografia/GettySince then, lawmakers in both Paraguay and Uruguay have proposed their own bitcoin legislation. In mid-August, president of Argentina Alberto Fernandez told one of the nation’s media channels that he was open to making bitcoin legal tender in the country. Nations in other parts of the world, especially those with currencies pegged to the dollar, are keen to see if bitcoin could offer them more monetary autonomy.However, Nelson Rauda Zablah, from Salvadoran news outlet El Faro, urged empathy towards El Salvador’s citizens who are in effect becoming guinea pigs in the world’s first state-run cryptocurrency experiment. He called for those “cheering the president from the sidelines” to consider what it would be like if their own national economy was about to be tossed into a “virtual casino,” and it was “their own business, credit rating, pension scheme, or savings at stake.

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Bitcoin has become legal tender in El Salvador, with the aim of boosting its economy although analysts warn of a negative impact. Photo: Marvin Recinos AFP via GettyEl Salvador has become the first country in the world to make bitcoin (BTC-USD) legal tender. The world’s largest cryptocurrency is now formally part of the nation’s economy following an announcement made by president Nayib Bukele’s government earlier in June.The development comes amid protest and uncertainty as questions remain about bitcoin’s integration into the country’s financial system and general access to the new technology among Salvadorans where 32.7% of the population remains below the poverty line. Furthermore, only 58% of the population have access to the internet, which is necessary for bitcoin transactions.Now that the law has come into effect every Salvadoran will soon be offered a government-run digital wallet containing $30 (£21.70) worth of bitcoin. This “Chivo Wallet” will be “easy to use,” according to a statement from the legal adviser to the Salvadoran president, Javier Argueta. The official added that the government “will promote the necessary training and mechanisms so that the population can access transactions in bitcoin.”Read more: FCA issues fresh warning on ‘pump and dump’ crypto scamsPresident Bukele’s administration has been keen to address concerns about article 7 of the new law, which stipulates that acceptance of bitcoin as payment is compulsory. However, in late August, his spokesman Ernesto Sanabria told CoinDesk that “the president has been clear in saying that the use of bitcoin is not mandatory.” Argueta has also reassured Salvadorans that, “the state will provide alternatives that allow the user to carry out transactions in bitcoin, as well as having automatic and instant convertibility from bitcoin to dollar if desired.”  A protest against the Bitcoin law in San Salvador, El Salvador. Photo: Camilo Freedman/Aphotografia/GettyAnother major concern among Salvadorans is that the law could eventually evolve to see salaries being paid in the cryptocurrency. However, the Salvadoran government in an official statement has said it will “guarantee that salaries, pensions and accounting operations will continue to be applied in dollars as the reference currency.”Story continuesRegardless of Bukele’s reassurances, there remains a high degree of suspicion within El Salvador that the law has a hidden agenda. One attendee at a ‘No Al Bitcoin’ (No to Bitcoin) protest outside the legislative assembly in San Salvador articulated a common sentiment that “there must be something else behind this, I think it’s a scam for money laundering and will make us a tax haven for Bitcoin millionaires.” However, Argueta, the president’s legal adviser, has dismissed these concerns as “disinformation generated by groups that are not from civil society” and “hinder what benefits the population.”Two surveys reveal the level of distrust within El Salvador towards the new law. A poll of 1,233 people run by Disruptiva at the beginning of July revealed that two-thirds of participants were not willing to be paid in Bitcoin. Read more: Bitcoin price surges even as SEC says crypto platforms need regulationA more recent study conducted in late August by El Salvador’s University of Central America (UCA) revealed a high level of negative sentiment towards the bitcoin law. The survey found that 80% of 1,281 people polled had no trust in bitcoin and only 17% think it will improve the economy.Suspicion of authority runs deep in El Salvador — a legacy of the nation’s 12-year civil war. The two main political factions, the leftist FMLN and the right-wing ARENA party are in an unusual agreement in their mutual opposition to the bitcoin Law. However, the president’s own party, Nuevas Ideas, has yet to break ranks with their leader.Argueta stated in June that El Salvador … was “now in the eyes of many investors in the world.” He added that “other nations such as Argentina and Uruguay have expressed their interest in analysing the bitcoin law to approve it.”  Many Salvadorans think that the move is a ‘scam for money laundering and will make us a tax haven for Bitcoin millionaires.’ Photo: Camilo Freedman/Aphotografia/GettySince then, lawmakers in both Paraguay and Uruguay have proposed their own bitcoin legislation. In mid-August, president of Argentina Alberto Fernandez told one of the nation’s media channels that he was open to making bitcoin legal tender in the country. Nations in other parts of the world, especially those with currencies pegged to the dollar, are keen to see if bitcoin could offer them more monetary autonomy.However, Nelson Rauda Zablah, from Salvadoran news outlet El Faro, urged empathy towards El Salvador’s citizens who are in effect becoming guinea pigs in the world’s first state-run cryptocurrency experiment. He called for those “cheering the president from the sidelines” to consider what it would be like if their own national economy was about to be tossed into a “virtual casino,” and it was “their own business, credit rating, pension scheme, or savings at stake.

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Bitcoin has become legal tender in El Salvador, with the aim of boosting its economy although analysts warn of a negative impact. Photo: Marvin Recinos AFP via GettyEl Salvador has become the first country in the world to make bitcoin (BTC-USD) legal tender. The world’s largest cryptocurrency is now formally part of the nation’s economy following an announcement made by president Nayib Bukele’s government earlier in June.The development comes amid protest and uncertainty as questions remain about bitcoin’s integration into the country’s financial system and general access to the new technology among Salvadorans where 32.7% of the population remains below the poverty line. Furthermore, only 58% of the population have access to the internet, which is necessary for bitcoin transactions.Now that the law has come into effect every Salvadoran will soon be offered a government-run digital wallet containing $30 (£21.70) worth of bitcoin. This “Chivo Wallet” will be “easy to use,” according to a statement from the legal adviser to the Salvadoran president, Javier Argueta. The official added that the government “will promote the necessary training and mechanisms so that the population can access transactions in bitcoin.”Read more: FCA issues fresh warning on ‘pump and dump’ crypto scamsPresident Bukele’s administration has been keen to address concerns about article 7 of the new law, which stipulates that acceptance of bitcoin as payment is compulsory. However, in late August, his spokesman Ernesto Sanabria told CoinDesk that “the president has been clear in saying that the use of bitcoin is not mandatory.” Argueta has also reassured Salvadorans that, “the state will provide alternatives that allow the user to carry out transactions in bitcoin, as well as having automatic and instant convertibility from bitcoin to dollar if desired.”  A protest against the Bitcoin law in San Salvador, El Salvador. Photo: Camilo Freedman/Aphotografia/GettyAnother major concern among Salvadorans is that the law could eventually evolve to see salaries being paid in the cryptocurrency. However, the Salvadoran government in an official statement has said it will “guarantee that salaries, pensions and accounting operations will continue to be applied in dollars as the reference currency.”Story continuesRegardless of Bukele’s reassurances, there remains a high degree of suspicion within El Salvador that the law has a hidden agenda. One attendee at a ‘No Al Bitcoin’ (No to Bitcoin) protest outside the legislative assembly in San Salvador articulated a common sentiment that “there must be something else behind this, I think it’s a scam for money laundering and will make us a tax haven for Bitcoin millionaires.” However, Argueta, the president’s legal adviser, has dismissed these concerns as “disinformation generated by groups that are not from civil society” and “hinder what benefits the population.”Two surveys reveal the level of distrust within El Salvador towards the new law. A poll of 1,233 people run by Disruptiva at the beginning of July revealed that two-thirds of participants were not willing to be paid in Bitcoin. Read more: Bitcoin price surges even as SEC says crypto platforms need regulationA more recent study conducted in late August by El Salvador’s University of Central America (UCA) revealed a high level of negative sentiment towards the bitcoin law. The survey found that 80% of 1,281 people polled had no trust in bitcoin and only 17% think it will improve the economy.Suspicion of authority runs deep in El Salvador — a legacy of the nation’s 12-year civil war. The two main political factions, the leftist FMLN and the right-wing ARENA party are in an unusual agreement in their mutual opposition to the bitcoin Law. However, the president’s own party, Nuevas Ideas, has yet to break ranks with their leader.Argueta stated in June that El Salvador … was “now in the eyes of many investors in the world.” He added that “other nations such as Argentina and Uruguay have expressed their interest in analysing the bitcoin law to approve it.”  Many Salvadorans think that the move is a ‘scam for money laundering and will make us a tax haven for Bitcoin millionaires.’ Photo: Camilo Freedman/Aphotografia/GettySince then, lawmakers in both Paraguay and Uruguay have proposed their own bitcoin legislation. In mid-August, president of Argentina Alberto Fernandez told one of the nation’s media channels that he was open to making bitcoin legal tender in the country. Nations in other parts of the world, especially those with currencies pegged to the dollar, are keen to see if bitcoin could offer them more monetary autonomy.However, Nelson Rauda Zablah, from Salvadoran news outlet El Faro, urged empathy towards El Salvador’s citizens who are in effect becoming guinea pigs in the world’s first state-run cryptocurrency experiment. He called for those “cheering the president from the sidelines” to consider what it would be like if their own national economy was about to be tossed into a “virtual casino,” and it was “their own business, credit rating, pension scheme, or savings at stake.

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FCA chair weighs in on Kim Kardashian and crypto risks
Charles Randell, chair of the Financial Conduct Authority (FCA), has published a speech on the risks of token regulation, which highlights concerns around TV stars like Kim Kardashian promoting crypto assets on social media.Kardashian was recently paid to ask her 250 million Instagram followers to speculate on crypto tokens by “joining the Ethereum Max Community”, which Randell says may have been the financial promotion with the single biggest audience reach in history.Randell notes: “In line with Instagram’s rules, she disclosed that this was an #AD. But she didn’t have to disclose that Ethereum Max – not to be confused with Ethereum – was a speculative digital token created a month before by unknown developers – one of hundreds of such tokens that fill the crypto-exchanges.”“Of course, I can’t say whether this particular token is a scam. But social media influencers are routinely paid by scammers to help them pump and dump new tokens on the back of pure speculation. Some influencers promote coins that turn out simply not to exist at all.”According to the FCA chair, there are no assets or real-world cash flows underpinning the price of speculative digital tokens, even the better-known ones like Bitcoin, and many cannot even boast a scarcity value.Moreover, these tokens have only been around for a few years, so it is not clear what will happen over a full financial cycle.“We simply don’t know when or how this story will end, but – as with any new speculation – it may not end well,” says Randell.Despite this, the hype around them generates a powerful fear of missing out from some consumers who may have little understanding of their risks.Randell suggests there is no shortage of stories of people who have lost savings by being lured into the crypto bubble with delusions of quick riches, sometimes after listening to their favourite influencers, ready to betray their fans’ trust for a fee.The FCA has repeatedly warned about the risks of holding speculative tokens; these tokens are not regulated by the FCA and are not covered by the Financial Services Compensation Scheme.Therefore, if you buy them, you should be prepared to lose all your money, Randell highlights.The FCA’s take on this is similar to that of other international regulators as it sees investing in cryptocurrencies as extremely high risk.Meanwhile, the FCA has also warned that bringing cryptocurrencies into the regulatory sphere risks adding more perceived legitimacy to the currencies.Randell states: “The tide of regulation is turning all over the world, and online platforms should expect a future where regulation addresses the significant risks they pose in the same way as other businesses. Same risk, same regulation.”Commenting on the chair’s speech, Susannah Streeter, senior investment and markets analyst, Hargreaves Lansdown, says: “It’s unusual to hear the chair of Britain’s financial watchdog dedicate a big chunk of his speech to superstar reality TV queen Kim Kardashian – but it shows just how concerned the FCA is about the level of financial promotion of crypto assets on social media.”Streeter affirms: “Now it appears to be throwing its weight behind recommendations made by the influential Basel committee which brings together regulators from around the world.”If banks and other regulated financial institutions dabble in crypto, the committee is considering making them put aside enough capital to cover 100 per cent of potential losses.Giving speculative tokens a high-risk price tag is likely to make cryptocurrency dealing and investment very expensive and could limit the number of new institutional entrants into the crypto world, according to Streeter.Additionally, Streeter says it’s likely that lower financial buffers would be needed for stable coins, which are seen as less volatile as they are pegged to currencies like the dollar.Streeter concludes: “It is clear the FCA wants to push the financial industry towards these digital assets, seeing them as a useful way to improve the payments market away from the crypto Wild West.’’Cryptocurrencies represent a new form of a digital asset based on a network that is distributed across a large number of computers. To read more about this, click here.

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FCA chair weighs in on Kim Kardashian and crypto risks
Charles Randell, chair of the Financial Conduct Authority (FCA), has published a speech on the risks of token regulation, which highlights concerns around TV stars like Kim Kardashian promoting crypto assets on social media.Kardashian was recently paid to ask her 250 million Instagram followers to speculate on crypto tokens by “joining the Ethereum Max Community”, which Randell says may have been the financial promotion with the single biggest audience reach in history.Randell notes: “In line with Instagram’s rules, she disclosed that this was an #AD. But she didn’t have to disclose that Ethereum Max – not to be confused with Ethereum – was a speculative digital token created a month before by unknown developers – one of hundreds of such tokens that fill the crypto-exchanges.”“Of course, I can’t say whether this particular token is a scam. But social media influencers are routinely paid by scammers to help them pump and dump new tokens on the back of pure speculation. Some influencers promote coins that turn out simply not to exist at all.”According to the FCA chair, there are no assets or real-world cash flows underpinning the price of speculative digital tokens, even the better-known ones like Bitcoin, and many cannot even boast a scarcity value.Moreover, these tokens have only been around for a few years, so it is not clear what will happen over a full financial cycle.“We simply don’t know when or how this story will end, but – as with any new speculation – it may not end well,” says Randell.Despite this, the hype around them generates a powerful fear of missing out from some consumers who may have little understanding of their risks.Randell suggests there is no shortage of stories of people who have lost savings by being lured into the crypto bubble with delusions of quick riches, sometimes after listening to their favourite influencers, ready to betray their fans’ trust for a fee.The FCA has repeatedly warned about the risks of holding speculative tokens; these tokens are not regulated by the FCA and are not covered by the Financial Services Compensation Scheme.Therefore, if you buy them, you should be prepared to lose all your money, Randell highlights.The FCA’s take on this is similar to that of other international regulators as it sees investing in cryptocurrencies as extremely high risk.Meanwhile, the FCA has also warned that bringing cryptocurrencies into the regulatory sphere risks adding more perceived legitimacy to the currencies.Randell states: “The tide of regulation is turning all over the world, and online platforms should expect a future where regulation addresses the significant risks they pose in the same way as other businesses. Same risk, same regulation.”Commenting on the chair’s speech, Susannah Streeter, senior investment and markets analyst, Hargreaves Lansdown, says: “It’s unusual to hear the chair of Britain’s financial watchdog dedicate a big chunk of his speech to superstar reality TV queen Kim Kardashian – but it shows just how concerned the FCA is about the level of financial promotion of crypto assets on social media.”Streeter affirms: “Now it appears to be throwing its weight behind recommendations made by the influential Basel committee which brings together regulators from around the world.”If banks and other regulated financial institutions dabble in crypto, the committee is considering making them put aside enough capital to cover 100 per cent of potential losses.Giving speculative tokens a high-risk price tag is likely to make cryptocurrency dealing and investment very expensive and could limit the number of new institutional entrants into the crypto world, according to Streeter.Additionally, Streeter says it’s likely that lower financial buffers would be needed for stable coins, which are seen as less volatile as they are pegged to currencies like the dollar.Streeter concludes: “It is clear the FCA wants to push the financial industry towards these digital assets, seeing them as a useful way to improve the payments market away from the crypto Wild West.’’Cryptocurrencies represent a new form of a digital asset based on a network that is distributed across a large number of computers. To read more about this, click here.

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FCA chair weighs in on Kim Kardashian and crypto risks
Charles Randell, chair of the Financial Conduct Authority (FCA), has published a speech on the risks of token regulation, which highlights concerns around TV stars like Kim Kardashian promoting crypto assets on social media.Kardashian was recently paid to ask her 250 million Instagram followers to speculate on crypto tokens by “joining the Ethereum Max Community”, which Randell says may have been the financial promotion with the single biggest audience reach in history.Randell notes: “In line with Instagram’s rules, she disclosed that this was an #AD. But she didn’t have to disclose that Ethereum Max – not to be confused with Ethereum – was a speculative digital token created a month before by unknown developers – one of hundreds of such tokens that fill the crypto-exchanges.”“Of course, I can’t say whether this particular token is a scam. But social media influencers are routinely paid by scammers to help them pump and dump new tokens on the back of pure speculation. Some influencers promote coins that turn out simply not to exist at all.”According to the FCA chair, there are no assets or real-world cash flows underpinning the price of speculative digital tokens, even the better-known ones like Bitcoin, and many cannot even boast a scarcity value.Moreover, these tokens have only been around for a few years, so it is not clear what will happen over a full financial cycle.“We simply don’t know when or how this story will end, but – as with any new speculation – it may not end well,” says Randell.Despite this, the hype around them generates a powerful fear of missing out from some consumers who may have little understanding of their risks.Randell suggests there is no shortage of stories of people who have lost savings by being lured into the crypto bubble with delusions of quick riches, sometimes after listening to their favourite influencers, ready to betray their fans’ trust for a fee.The FCA has repeatedly warned about the risks of holding speculative tokens; these tokens are not regulated by the FCA and are not covered by the Financial Services Compensation Scheme.Therefore, if you buy them, you should be prepared to lose all your money, Randell highlights.The FCA’s take on this is similar to that of other international regulators as it sees investing in cryptocurrencies as extremely high risk.Meanwhile, the FCA has also warned that bringing cryptocurrencies into the regulatory sphere risks adding more perceived legitimacy to the currencies.Randell states: “The tide of regulation is turning all over the world, and online platforms should expect a future where regulation addresses the significant risks they pose in the same way as other businesses. Same risk, same regulation.”Commenting on the chair’s speech, Susannah Streeter, senior investment and markets analyst, Hargreaves Lansdown, says: “It’s unusual to hear the chair of Britain’s financial watchdog dedicate a big chunk of his speech to superstar reality TV queen Kim Kardashian – but it shows just how concerned the FCA is about the level of financial promotion of crypto assets on social media.”Streeter affirms: “Now it appears to be throwing its weight behind recommendations made by the influential Basel committee which brings together regulators from around the world.”If banks and other regulated financial institutions dabble in crypto, the committee is considering making them put aside enough capital to cover 100 per cent of potential losses.Giving speculative tokens a high-risk price tag is likely to make cryptocurrency dealing and investment very expensive and could limit the number of new institutional entrants into the crypto world, according to Streeter.Additionally, Streeter says it’s likely that lower financial buffers would be needed for stable coins, which are seen as less volatile as they are pegged to currencies like the dollar.Streeter concludes: “It is clear the FCA wants to push the financial industry towards these digital assets, seeing them as a useful way to improve the payments market away from the crypto Wild West.’’Cryptocurrencies represent a new form of a digital asset based on a network that is distributed across a large number of computers. To read more about this, click here.

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FCA chair weighs in on Kim Kardashian and crypto risks
Charles Randell, chair of the Financial Conduct Authority (FCA), has published a speech on the risks of token regulation, which highlights concerns around TV stars like Kim Kardashian promoting crypto assets on social media.Kardashian was recently paid to ask her 250 million Instagram followers to speculate on crypto tokens by “joining the Ethereum Max Community”, which Randell says may have been the financial promotion with the single biggest audience reach in history.Randell notes: “In line with Instagram’s rules, she disclosed that this was an #AD. But she didn’t have to disclose that Ethereum Max – not to be confused with Ethereum – was a speculative digital token created a month before by unknown developers – one of hundreds of such tokens that fill the crypto-exchanges.”“Of course, I can’t say whether this particular token is a scam. But social media influencers are routinely paid by scammers to help them pump and dump new tokens on the back of pure speculation. Some influencers promote coins that turn out simply not to exist at all.”According to the FCA chair, there are no assets or real-world cash flows underpinning the price of speculative digital tokens, even the better-known ones like Bitcoin, and many cannot even boast a scarcity value.Moreover, these tokens have only been around for a few years, so it is not clear what will happen over a full financial cycle.“We simply don’t know when or how this story will end, but – as with any new speculation – it may not end well,” says Randell.Despite this, the hype around them generates a powerful fear of missing out from some consumers who may have little understanding of their risks.Randell suggests there is no shortage of stories of people who have lost savings by being lured into the crypto bubble with delusions of quick riches, sometimes after listening to their favourite influencers, ready to betray their fans’ trust for a fee.The FCA has repeatedly warned about the risks of holding speculative tokens; these tokens are not regulated by the FCA and are not covered by the Financial Services Compensation Scheme.Therefore, if you buy them, you should be prepared to lose all your money, Randell highlights.The FCA’s take on this is similar to that of other international regulators as it sees investing in cryptocurrencies as extremely high risk.Meanwhile, the FCA has also warned that bringing cryptocurrencies into the regulatory sphere risks adding more perceived legitimacy to the currencies.Randell states: “The tide of regulation is turning all over the world, and online platforms should expect a future where regulation addresses the significant risks they pose in the same way as other businesses. Same risk, same regulation.”Commenting on the chair’s speech, Susannah Streeter, senior investment and markets analyst, Hargreaves Lansdown, says: “It’s unusual to hear the chair of Britain’s financial watchdog dedicate a big chunk of his speech to superstar reality TV queen Kim Kardashian – but it shows just how concerned the FCA is about the level of financial promotion of crypto assets on social media.”Streeter affirms: “Now it appears to be throwing its weight behind recommendations made by the influential Basel committee which brings together regulators from around the world.”If banks and other regulated financial institutions dabble in crypto, the committee is considering making them put aside enough capital to cover 100 per cent of potential losses.Giving speculative tokens a high-risk price tag is likely to make cryptocurrency dealing and investment very expensive and could limit the number of new institutional entrants into the crypto world, according to Streeter.Additionally, Streeter says it’s likely that lower financial buffers would be needed for stable coins, which are seen as less volatile as they are pegged to currencies like the dollar.Streeter concludes: “It is clear the FCA wants to push the financial industry towards these digital assets, seeing them as a useful way to improve the payments market away from the crypto Wild West.’’Cryptocurrencies represent a new form of a digital asset based on a network that is distributed across a large number of computers. To read more about this, click here.

[Read More] […]

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FCA chair weighs in on Kim Kardashian and crypto risks
Charles Randell, chair of the Financial Conduct Authority (FCA), has published a speech on the risks of token regulation, which highlights concerns around TV stars like Kim Kardashian promoting crypto assets on social media.Kardashian was recently paid to ask her 250 million Instagram followers to speculate on crypto tokens by “joining the Ethereum Max Community”, which Randell says may have been the financial promotion with the single biggest audience reach in history.Randell notes: “In line with Instagram’s rules, she disclosed that this was an #AD. But she didn’t have to disclose that Ethereum Max – not to be confused with Ethereum – was a speculative digital token created a month before by unknown developers – one of hundreds of such tokens that fill the crypto-exchanges.”“Of course, I can’t say whether this particular token is a scam. But social media influencers are routinely paid by scammers to help them pump and dump new tokens on the back of pure speculation. Some influencers promote coins that turn out simply not to exist at all.”According to the FCA chair, there are no assets or real-world cash flows underpinning the price of speculative digital tokens, even the better-known ones like Bitcoin, and many cannot even boast a scarcity value.Moreover, these tokens have only been around for a few years, so it is not clear what will happen over a full financial cycle.“We simply don’t know when or how this story will end, but – as with any new speculation – it may not end well,” says Randell.Despite this, the hype around them generates a powerful fear of missing out from some consumers who may have little understanding of their risks.Randell suggests there is no shortage of stories of people who have lost savings by being lured into the crypto bubble with delusions of quick riches, sometimes after listening to their favourite influencers, ready to betray their fans’ trust for a fee.The FCA has repeatedly warned about the risks of holding speculative tokens; these tokens are not regulated by the FCA and are not covered by the Financial Services Compensation Scheme.Therefore, if you buy them, you should be prepared to lose all your money, Randell highlights.The FCA’s take on this is similar to that of other international regulators as it sees investing in cryptocurrencies as extremely high risk.Meanwhile, the FCA has also warned that bringing cryptocurrencies into the regulatory sphere risks adding more perceived legitimacy to the currencies.Randell states: “The tide of regulation is turning all over the world, and online platforms should expect a future where regulation addresses the significant risks they pose in the same way as other businesses. Same risk, same regulation.”Commenting on the chair’s speech, Susannah Streeter, senior investment and markets analyst, Hargreaves Lansdown, says: “It’s unusual to hear the chair of Britain’s financial watchdog dedicate a big chunk of his speech to superstar reality TV queen Kim Kardashian – but it shows just how concerned the FCA is about the level of financial promotion of crypto assets on social media.”Streeter affirms: “Now it appears to be throwing its weight behind recommendations made by the influential Basel committee which brings together regulators from around the world.”If banks and other regulated financial institutions dabble in crypto, the committee is considering making them put aside enough capital to cover 100 per cent of potential losses.Giving speculative tokens a high-risk price tag is likely to make cryptocurrency dealing and investment very expensive and could limit the number of new institutional entrants into the crypto world, according to Streeter.Additionally, Streeter says it’s likely that lower financial buffers would be needed for stable coins, which are seen as less volatile as they are pegged to currencies like the dollar.Streeter concludes: “It is clear the FCA wants to push the financial industry towards these digital assets, seeing them as a useful way to improve the payments market away from the crypto Wild West.’’Cryptocurrencies represent a new form of a digital asset based on a network that is distributed across a large number of computers. To read more about this, click here.

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Around 2.3 million Britons currently hold some form of cryptocurrency. 14% of them also used credit to purchase them, thereby increasing the exposure to loss. Photo: GettyThe UK’s financial regulator has issued a fresh warning about investing in cryptocurrencies, as tokens continue to become more mainstream. Charles Randell, chair of the Financial Conduct Authority (FCA) and PSR, reiterated the regulator’s line in a speech to the Cambridge International Symposium on Economic Crime that consumers investing in tokens should “be prepared to lose all [their] money.”Randell explained that there are no assets underpinning the price of even popular speculative digital tokens such as Bitcoin (BTC-USD).  “These tokens have only been around for a few years, so we haven’t seen what will happen over a full financial cycle. We simply don’t know when or how this story will end, but — as with any new speculation — it may not end well,” he said. “At the FCA we have repeatedly warned about the risks of holding speculative tokens. To be clear: these tokens are not regulated by the FCA. They are not covered by the Financial Services Compensation Scheme. If you buy them, you should be prepared to lose all your money.”Read more: IPO Watch: Goldman Sachs plans $5bn Petershill IPOHe also warned that influencers are routinely paid by scammers to help them “pump and dump” new tokens on the back of pure speculation, citing a recent promotion by Kim Kardashian to 250 million instagram followers. “The watchdog is clearly horrified at the lack of controls implemented by major social media platforms and has urged them to crackdown on posts which aren’t clearly identified as promotions,” said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown. “It reckons given the seriousness of the situation legislation forcing them to do so should be the solution, highlighting that the current Online Harms bill just won’t go far enough.”An estimated 2.3 million Britons currently hold this type of token. 14% of them also use credit to purchase them, thereby increasing the exposure to loss. And 12% — around a quarter of a million people — seem to think that they will be protected by the FCA or the Financial Services Compensation Scheme if they go wrong. “They won’t,” said Randell. Read more: Markets head higher despite wild miss in US jobs reportA Treasury consultation on the UK approach to cryptoassets and stablecoins closed earlier this year, and the FCA is working closely with the Treasury and Bank of England as part of the Cryptoassets Taskforce.The speech comes following a record-breaking month for crypto flows in August. Last week, Bitcoin also breached $50,000 for the second time in two weeks, extending a rally. Today, the largest token was trading at $51,605 by lunchtime in London, up 3% from the previous session. The cryptocurrency global market cap currently stands at $2.35trn, according to CoinMarketCap.com.

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Around 2.3 million Britons currently hold some form of cryptocurrency. 14% of them also used credit to purchase them, thereby increasing the exposure to loss. Photo: GettyThe UK’s financial regulator has issued a fresh warning about investing in cryptocurrencies, as tokens continue to become more mainstream. Charles Randell, chair of the Financial Conduct Authority (FCA) and PSR, reiterated the regulator’s line in a speech to the Cambridge International Symposium on Economic Crime that consumers investing in tokens should “be prepared to lose all [their] money.”Randell explained that there are no assets underpinning the price of even popular speculative digital tokens such as Bitcoin (BTC-USD).  “These tokens have only been around for a few years, so we haven’t seen what will happen over a full financial cycle. We simply don’t know when or how this story will end, but — as with any new speculation — it may not end well,” he said. “At the FCA we have repeatedly warned about the risks of holding speculative tokens. To be clear: these tokens are not regulated by the FCA. They are not covered by the Financial Services Compensation Scheme. If you buy them, you should be prepared to lose all your money.”Read more: IPO Watch: Goldman Sachs plans $5bn Petershill IPOHe also warned that influencers are routinely paid by scammers to help them “pump and dump” new tokens on the back of pure speculation, citing a recent promotion by Kim Kardashian to 250 million instagram followers. “The watchdog is clearly horrified at the lack of controls implemented by major social media platforms and has urged them to crackdown on posts which aren’t clearly identified as promotions,” said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown. “It reckons given the seriousness of the situation legislation forcing them to do so should be the solution, highlighting that the current Online Harms bill just won’t go far enough.”An estimated 2.3 million Britons currently hold this type of token. 14% of them also use credit to purchase them, thereby increasing the exposure to loss. And 12% — around a quarter of a million people — seem to think that they will be protected by the FCA or the Financial Services Compensation Scheme if they go wrong. “They won’t,” said Randell. Read more: Markets head higher despite wild miss in US jobs reportA Treasury consultation on the UK approach to cryptoassets and stablecoins closed earlier this year, and the FCA is working closely with the Treasury and Bank of England as part of the Cryptoassets Taskforce.The speech comes following a record-breaking month for crypto flows in August. Last week, Bitcoin also breached $50,000 for the second time in two weeks, extending a rally. Today, the largest token was trading at $51,605 by lunchtime in London, up 3% from the previous session. The cryptocurrency global market cap currently stands at $2.35trn, according to CoinMarketCap.com.

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Around 2.3 million Britons currently hold some form of cryptocurrency. 14% of them also used credit to purchase them, thereby increasing the exposure to loss. Photo: GettyThe UK’s financial regulator has issued a fresh warning about investing in cryptocurrencies, as tokens continue to become more mainstream. Charles Randell, chair of the Financial Conduct Authority (FCA) and PSR, reiterated the regulator’s line in a speech to the Cambridge International Symposium on Economic Crime that consumers investing in tokens should “be prepared to lose all [their] money.”Randell explained that there are no assets underpinning the price of even popular speculative digital tokens such as Bitcoin (BTC-USD).  “These tokens have only been around for a few years, so we haven’t seen what will happen over a full financial cycle. We simply don’t know when or how this story will end, but — as with any new speculation — it may not end well,” he said. “At the FCA we have repeatedly warned about the risks of holding speculative tokens. To be clear: these tokens are not regulated by the FCA. They are not covered by the Financial Services Compensation Scheme. If you buy them, you should be prepared to lose all your money.”Read more: IPO Watch: Goldman Sachs plans $5bn Petershill IPOHe also warned that influencers are routinely paid by scammers to help them “pump and dump” new tokens on the back of pure speculation, citing a recent promotion by Kim Kardashian to 250 million instagram followers. “The watchdog is clearly horrified at the lack of controls implemented by major social media platforms and has urged them to crackdown on posts which aren’t clearly identified as promotions,” said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown. “It reckons given the seriousness of the situation legislation forcing them to do so should be the solution, highlighting that the current Online Harms bill just won’t go far enough.”An estimated 2.3 million Britons currently hold this type of token. 14% of them also use credit to purchase them, thereby increasing the exposure to loss. And 12% — around a quarter of a million people — seem to think that they will be protected by the FCA or the Financial Services Compensation Scheme if they go wrong. “They won’t,” said Randell. Read more: Markets head higher despite wild miss in US jobs reportA Treasury consultation on the UK approach to cryptoassets and stablecoins closed earlier this year, and the FCA is working closely with the Treasury and Bank of England as part of the Cryptoassets Taskforce.The speech comes following a record-breaking month for crypto flows in August. Last week, Bitcoin also breached $50,000 for the second time in two weeks, extending a rally. Today, the largest token was trading at $51,605 by lunchtime in London, up 3% from the previous session. The cryptocurrency global market cap currently stands at $2.35trn, according to CoinMarketCap.com.

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Around 2.3 million Britons currently hold some form of cryptocurrency. 14% of them also used credit to purchase them, thereby increasing the exposure to loss. Photo: GettyThe UK’s financial regulator has issued a fresh warning about investing in cryptocurrencies, as tokens continue to become more mainstream. Charles Randell, chair of the Financial Conduct Authority (FCA) and PSR, reiterated the regulator’s line in a speech to the Cambridge International Symposium on Economic Crime that consumers investing in tokens should “be prepared to lose all [their] money.”Randell explained that there are no assets underpinning the price of even popular speculative digital tokens such as Bitcoin (BTC-USD).  “These tokens have only been around for a few years, so we haven’t seen what will happen over a full financial cycle. We simply don’t know when or how this story will end, but — as with any new speculation — it may not end well,” he said. “At the FCA we have repeatedly warned about the risks of holding speculative tokens. To be clear: these tokens are not regulated by the FCA. They are not covered by the Financial Services Compensation Scheme. If you buy them, you should be prepared to lose all your money.”Read more: IPO Watch: Goldman Sachs plans $5bn Petershill IPOHe also warned that influencers are routinely paid by scammers to help them “pump and dump” new tokens on the back of pure speculation, citing a recent promotion by Kim Kardashian to 250 million instagram followers. “The watchdog is clearly horrified at the lack of controls implemented by major social media platforms and has urged them to crackdown on posts which aren’t clearly identified as promotions,” said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown. “It reckons given the seriousness of the situation legislation forcing them to do so should be the solution, highlighting that the current Online Harms bill just won’t go far enough.”An estimated 2.3 million Britons currently hold this type of token. 14% of them also use credit to purchase them, thereby increasing the exposure to loss. And 12% — around a quarter of a million people — seem to think that they will be protected by the FCA or the Financial Services Compensation Scheme if they go wrong. “They won’t,” said Randell. Read more: Markets head higher despite wild miss in US jobs reportA Treasury consultation on the UK approach to cryptoassets and stablecoins closed earlier this year, and the FCA is working closely with the Treasury and Bank of England as part of the Cryptoassets Taskforce.The speech comes following a record-breaking month for crypto flows in August. Last week, Bitcoin also breached $50,000 for the second time in two weeks, extending a rally. Today, the largest token was trading at $51,605 by lunchtime in London, up 3% from the previous session. The cryptocurrency global market cap currently stands at $2.35trn, according to CoinMarketCap.com.

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Around 2.3 million Britons currently hold some form of cryptocurrency. 14% of them also used credit to purchase them, thereby increasing the exposure to loss. Photo: GettyThe UK’s financial regulator has issued a fresh warning about investing in cryptocurrencies, as tokens continue to become more mainstream. Charles Randell, chair of the Financial Conduct Authority (FCA) and PSR, reiterated the regulator’s line in a speech to the Cambridge International Symposium on Economic Crime that consumers investing in tokens should “be prepared to lose all [their] money.”Randell explained that there are no assets underpinning the price of even popular speculative digital tokens such as Bitcoin (BTC-USD).  “These tokens have only been around for a few years, so we haven’t seen what will happen over a full financial cycle. We simply don’t know when or how this story will end, but — as with any new speculation — it may not end well,” he said. “At the FCA we have repeatedly warned about the risks of holding speculative tokens. To be clear: these tokens are not regulated by the FCA. They are not covered by the Financial Services Compensation Scheme. If you buy them, you should be prepared to lose all your money.”Read more: IPO Watch: Goldman Sachs plans $5bn Petershill IPOHe also warned that influencers are routinely paid by scammers to help them “pump and dump” new tokens on the back of pure speculation, citing a recent promotion by Kim Kardashian to 250 million instagram followers. “The watchdog is clearly horrified at the lack of controls implemented by major social media platforms and has urged them to crackdown on posts which aren’t clearly identified as promotions,” said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown. “It reckons given the seriousness of the situation legislation forcing them to do so should be the solution, highlighting that the current Online Harms bill just won’t go far enough.”An estimated 2.3 million Britons currently hold this type of token. 14% of them also use credit to purchase them, thereby increasing the exposure to loss. And 12% — around a quarter of a million people — seem to think that they will be protected by the FCA or the Financial Services Compensation Scheme if they go wrong. “They won’t,” said Randell. Read more: Markets head higher despite wild miss in US jobs reportA Treasury consultation on the UK approach to cryptoassets and stablecoins closed earlier this year, and the FCA is working closely with the Treasury and Bank of England as part of the Cryptoassets Taskforce.The speech comes following a record-breaking month for crypto flows in August. Last week, Bitcoin also breached $50,000 for the second time in two weeks, extending a rally. Today, the largest token was trading at $51,605 by lunchtime in London, up 3% from the previous session. The cryptocurrency global market cap currently stands at $2.35trn, according to CoinMarketCap.com.

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Investment nightmare: Group members have ‘lost thousands” (Image: Getty)

Similar experiences investors claim of early profits, followed by plummeting values and futile struggles withdrawing funds, have brought them together over recent months. 

Related articles

As well as battling for redress, they want to warn others, hear from anyone else affected and campaign for more protection for consumers online.
++ If you’ve been affected by this issue or feel you’ve been a victim of injustice, please contact consumer and small business champion Maisha Frost on [email protected]  ++
Amounts they have put in they say range from £15,000 to £350,000. 

“It’s devastating. The reviews, from consumer and financial websites, were good. That’s what guided us. At first it was easy to get in touch, then more difficult and upsetting,” group member Kevin told Crusader.

They know the fightback is going to be hard. As they were aware Genesis11 trades are in risky areas that have become increasingly attractive to new ‘have-a-go’ and less experienced investors.
Along with cryptocurrencies, Genesis11 covers foreign exchange markets and more complex, short term Contract for Differences (CFDs) that pay settlement prices between open and closing trades. · 
Crucially it is not regulated by the Financial Conduct Authority (FCA) the UK’s gold standard authorisation for firms and the protection that affords for consumer complaints through the Financial Ombudsman. 
Seeing the word ‘regulated’ is never enough on a financial firm’s website, savers should always check the FCA’s list first.
Its online trading scam smart warning highlights how savers get enticed through search engines. Realistic returns early on can lure savers into the mire.

‘Regulated’ is no guarantee in crypto – extra care needs to be taken (Image: Getty)

Personal data collected can also be resold exposing victims to further risks, it warns.
The FCA chose not to comment about this matter, but flagged its scam smart warning.

It’s devastating. The reviews, from consumer and financial websites, were good. That’s what guided us
Kevin

The platform, whose contact address is in Vienna, states it is the brand name of Scothop Ltd, a business listed on Companies House. 
Crusader contacted the company for comment and about helping those who want to withdraw funds. We continue to wait for a response.
The savers who got in touch with Crusader had crypto wallet accounts opened in their names. “I was advised to pay by bank transfer. I got a code and the funds went through,” said one.
“The amount of transfers we made over a couple of months were very unusual for us. Had our bank alerted us that would have been a brake, made us think and perhaps saved us losing so much.” 
Bank transfers offer no consumer protection. Another investor chose to use his bank card to pay and has opened a dispute in a bid to claw back the money that way.
Money paid from the accounts of one couple show it was processed by Wisenex, a cryptocurrency exchange platform based in Estonia.

So far investors say efforts to trace and recoup funds from their banks in the UK have not worked and they are looking at complaining to the Financial Ombudsman. They have also asked Action Fraud to investigate.

[Read More] […]

Read More…

Investment nightmare: Group members have ‘lost thousands” (Image: Getty)

Similar experiences investors claim of early profits, followed by plummeting values and futile struggles withdrawing funds, have brought them together over recent months. 

Related articles

As well as battling for redress, they want to warn others, hear from anyone else affected and campaign for more protection for consumers online.
++ If you’ve been affected by this issue or feel you’ve been a victim of injustice, please contact consumer and small business champion Maisha Frost on [email protected]  ++
Amounts they have put in they say range from £15,000 to £350,000. 

“It’s devastating. The reviews, from consumer and financial websites, were good. That’s what guided us. At first it was easy to get in touch, then more difficult and upsetting,” group member Kevin told Crusader.

They know the fightback is going to be hard. As they were aware Genesis11 trades are in risky areas that have become increasingly attractive to new ‘have-a-go’ and less experienced investors.
Along with cryptocurrencies, Genesis11 covers foreign exchange markets and more complex, short term Contract for Differences (CFDs) that pay settlement prices between open and closing trades. · 
Crucially it is not regulated by the Financial Conduct Authority (FCA) the UK’s gold standard authorisation for firms and the protection that affords for consumer complaints through the Financial Ombudsman. 
Seeing the word ‘regulated’ is never enough on a financial firm’s website, savers should always check the FCA’s list first.
Its online trading scam smart warning highlights how savers get enticed through search engines. Realistic returns early on can lure savers into the mire.

‘Regulated’ is no guarantee in crypto – extra care needs to be taken (Image: Getty)

Personal data collected can also be resold exposing victims to further risks, it warns.
The FCA chose not to comment about this matter, but flagged its scam smart warning.

It’s devastating. The reviews, from consumer and financial websites, were good. That’s what guided us
Kevin

The platform, whose contact address is in Vienna, states it is the brand name of Scothop Ltd, a business listed on Companies House. 
Crusader contacted the company for comment and about helping those who want to withdraw funds. We continue to wait for a response.
The savers who got in touch with Crusader had crypto wallet accounts opened in their names. “I was advised to pay by bank transfer. I got a code and the funds went through,” said one.
“The amount of transfers we made over a couple of months were very unusual for us. Had our bank alerted us that would have been a brake, made us think and perhaps saved us losing so much.” 
Bank transfers offer no consumer protection. Another investor chose to use his bank card to pay and has opened a dispute in a bid to claw back the money that way.
Money paid from the accounts of one couple show it was processed by Wisenex, a cryptocurrency exchange platform based in Estonia.

So far investors say efforts to trace and recoup funds from their banks in the UK have not worked and they are looking at complaining to the Financial Ombudsman. They have also asked Action Fraud to investigate.

[Read More] […]

Read More…