The British regulator questioned the legitimacy of digital assets

The chairman of the UK Financial Conduct Authority (FCA) has questioned the legality of digital assets. In his opinion, they have no intrinsic value.

Charles RandellCharles Randell declared about the intention of Britain to become one of the world leaders in technology and innovation. In April, officials from the Ministry of Economy and Finance announced their intention to amend the legislation, according to which stablecoins could become an acceptable form of payment. Randell acknowledged that stablecoins, being pegged to government currencies, can have some value. However, Randall called the rest of the crypto assets useless instruments of market speculation:

“Should people be encouraged to believe in crypto investments? The price of bitcoin can easily halve in just six months, as it happened recently, and some speculative crypto assets will even drop to zero … Should people with no big savings or financial experience be allowed to buy crypto assets at all?

At the same time, the head of the FCA believes that the British government should not compensate for the losses of investors investing in cryptocurrencies. Users should take responsibility for their own actions and be more aware of the risks associated with investing in digital assets. Randall also criticized celebrities who invest in tokens and cryptocurrencies, saying that their statements can seriously harm the material well-being of ordinary people. According to Morning Consult, 45% of investors are ready to buy digital assets advertised by famous personalities.

Randall’s words were heard against the backdrop of the collapse of the Terra project due to the collapse of the rate of the algorithmic stablecoin UST and the LUNA coin, as well as a serious decline in the cryptocurrency market as a whole. FCA chief executive Sarah Pritchard recently said the regulator will take these developments into account when developing regulations to regulate the industry.