What are experts saying about FCA's ban? Must read
In today’s article, we will discuss an event that has sparked discussion among investors in the UK. Yes, we are talking about FCA's ban. Digital currencies are not exactly new, but many people do not have a clear idea either. These were introduced in 2009, the world's first-ever cryptocurrency was named Bitcoin. However, we have so many options to choose from with Ethereum, and Litecoins, being available in the market. But, before choosing anything, one must read the digital currency industry latest news in UK. In the UK, there are no strict restrictions on these currencies. Authorities consider them as foreign currencies, and levy taxes on them accordingly. But, this would change, as newer rules and regulations are being implemented. There are some instances where selling or distributing Bitcoins would be considered illegal. For example, you cannot sell these currencies to retail consumers, according to the FCA (Financial Conduct Authority)’s ban, effective from January 2021. The governing body also asked individuals to speculate on the future of these cryptocurrencies, as they would while gambling. The officials urge people to consider digital currencies as an investment, not a gambling option. FCA has found that 12% of cryptocurrency users in the UK don't bother to keep an eye out on the price fluctuations. Despite the good notion, experts think that this ban might do more harm than good. Why? Experienced traders will be able to foresee risks and withdraw money, or stop trading immediately. Or, they can deal with the losses more efficiently than others. Also, most of them will abide by the law and go through the standard procedures. But there are a few of them who will try some unsavory tactics. They might create an account with shady exchanges, and in places where these laws will not be effective. But that would be a risky move, experts claim. People are more likely to lose money if they follow these tactics. Other than that, FCA's ban would not have a massive impact on the UK's cryptocurrency market. Members of regulated cryptocurrency exchanges and brokerage firms also agree on this point. They pointed out that this ban would lead to a loss of a 1% decrease in revenues, even less. It should be noted that this ban was met with tremendous opposition from investors and traders alike. Even after the ban, an overwhelming response was recorded; 97% of these comments are opposing the ban. This was shown in a report, by the agency itself. Despite the hiccups, people are taking a keen interest in these currencies. The introduction of appropriate regulations will propel the country towards the legalization of digital currencies. This is the mentality among experts and common people of the UK. It would help exchanges promote these concepts among the masses and encourage them to invest in these currencies. This is considered as a ray of hope during the post-pandemic financial crisis. If you are in the UK, you should be aware of the digital currency industry latest news in UK. But your knowledge must not be limited by geographical boundaries, you must know about international events too. This is true, especially if you are looking forward to doing cross-country trading.