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The CEO of the UK financial regulator has spoken out against any government compensation for cryptocurrency investors who are victims of scams.
Nikhil Rathi, CEO of the UK Financial Conduct Authority (FCA), believes that cryptocurrencies should be subject to stricter regulation than other financial instruments.
The UK regulator recently announced that it is optimizing investor compensation schemes due to an increase in fraud. Nikhil Rati believes that in this situation, the losses associated with investments in cryptocurrencies cannot be compensated. Consumers need to understand this when investing in such assets. In addition, clear boundaries need to be created for compensating losses in financial markets, especially for retail investors.
“They [криптовалюты] can be linked to organized crime and money laundering, and anyone who invests in them should be prepared to lose all their money, ”he said.
The FCA has faced a sharp increase in the number of applications for licensing cryptocurrency exchanges, but most of them do not meet the requirements, which leads to denials or withdrawals of applications. Rati said this would make financial companies face more scrutiny.
Regulators in the UK recently released a white paper on an update to the tax structure for cryptocurrency exchanges. It said that cryptocurrencies are not goods or currency. Therefore, according to the statement of the UK Revenue and Customs Service, they cannot be exempt from taxes.
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