UK’s FCA Launches Digital Campaign Against Cryptocurrency
UK Financial Conduct Authority Chief Executive Nikhil Rathi said in a speech that the agency is creating an 11 million pound sterling campaign to warn cryptocurrency holders about the risks of investing in digital assets.
“We’ve seen an explosion among younger people speculating on cryptocurrencies or other high-risk investments,” Rathi said. “Investors in cryptoassets should be prepared to lose all their money.”
Research published within the last year by the Financial Conduct Authority found that nearly 2.5 million people in the UK have purchased digital assets, he said.
Stimulus Payments Increased Bitcoin Trading Volume, Says Fed
The Federal Reserve Bank of Cleveland Friday released a working paper indicating that pandemic-related stimulus payments made in April 2020 increased the trading volume of Bitcoin.
“We find a significant increase in Bitcoin buy trades for the modal [economic impact payment] amount of $1,200,” the working paper said, adding that the stimulus payments increased Bitcoin trading volume by about 3.8% between April 9, 2020, and June 5, 2020.
Trades associated with the stimulus payments also resulted in a slight rise in the price of Bitcoin of 7 basis points.
“The decision to invest in Bitcoin is very heterogeneous, with only a few people choosing to invest the entire amount,” the study showed. “We find no evidence that EIP recipients with families, nor people who received unemployment insurance, use the money to buy Bitcoin.”
US Introduce Bill to Provide Regulatory Clarity for Digital Assets
Meanwhile, US House of Representatives Congressman Tom Emmer on Thursday introduced the co-sponsored Securities Clarity Act, which, if passed, would clearly define digital assets like cryptocurrencies and related emerging technologies under existing US securities laws.
“We have seen a lack of clear regulations hinder the progress of blockchain-based technologies. The development of these innovations should not be impacted by the government’s inability to adjust,” Emmer said. He also remarked that “this lack of clarity is hurting American innovation…leaving many to take the technology overseas.” The Securities Clarity Act is co-sponsored by Representatives Darren Soto and Ro Khanna.
US State Department Willing to Pay for Cybercrime Tips Using Cryptocurrency
The US Department of State said Thursday that rewards for information pertaining to foreign malicious cyber crimes against critical US infrastructure can be paid in cryptocurrency.
The State Department’s Diplomatic Security Service, which administers the Rewards for Justice program, “is offering a reward of up to $10 million for information leading to the identification or location of any person who, while acting at the direction or under the control of a foreign government, participates in malicious cyber activities against U.S. critical infrastructure in violation of the Computer Fraud and Abuse Act (CFAA),” the announcement said.
“Reward payments may include payments in cryptocurrency.”
The announcement also said that the Rewards for Justice program since 1984 has awarded more than $200 million to more than 100 people worldwide for providing actionable information that helped prevent or prosecute terrorism or resolve US national security threats.
UK’s FCA Launches Digital Campaign Against Cryptocurrency
