Members of Parliament in the UK told Nikhil Rathi, chief executive of the Financial Conduct Authority (FCA), that cryptocurrencies are not investments and the words “invest and investment” should not be used in the context of these assets, according to The Times report. “The words’ your investment’ endorse the idea that this is an investment on par with an FTSE 100 company or a unit trust,” Harriet Baldwin, Conservative MP for West Worcestershire, reportedly said.
The MP said listing unregistered crypto businesses on the website could backfire.
West Worcestershire’s MP claimed that FCA’s list of unregistered cryptocurrency businesses could be a hindrance to the regulator’s anti-money laundering regime. “Your website actually publishes a list of unregistered crypto-asset businesses for anti-money laundering purposes. It’s meant to be helpful, but it could also be helpful to someone who just wants to launder money,” the MP and former JP Morgan banker added. The FCA is the UK’s competent authority to supervise money laundering risks presented by cryptocurrency businesses.
FCA continues to aggressively regulate the crypto industry.
At the start of the year, the FCA said consumers should be “prepared to lose all their money” if they choose to invest in cryptocurrencies, and Rathi reiterated this stance a second time in September. The FCA has also previously said consumers are “unlikely” to have access to the Financial Services Compensation Scheme—a compensation scheme to cover losses if “something goes wrong”—if those losses occur in crypto. Rathi doubled down on this during his discussion with MPs, although he did not appear to have the same enthusiasm for ditching investment language altogether.