Posted 2 years ago | Ben Armstrong
Regulators Separating BTC & ETH from Other Cryptocurrencies
The top financial watchdog in the U.K. has announced that it will not regulate Bitcoin and Ethereum. The Financial Conduct Authority (FCA) made the statement yesterday. This is interesting given that the FCA was the regulatory body that worked very hard to crackdown on crypto Ponzi schemes & other crypto scams over the last two years.
Bitcoin & Ethereum seemed to have separated themselves from the other cryptocurrencies at least in the eyes of the FCA. One of the reasons why FCA has given them the distinction is because the regulators see both BTC & ETH as "Exchange Tokens" because they are primarily used as a method of exchange as opposed to security tokens & utility tokens.
While Bitcoin is immune to regulation, the FCA has said that utility tokens and security tokens will fall within their scope. Bitcoin regulation is getting slowly figured out across the globe, but most crypto projects still are in the infant stages of figuring out how they will be regulated. However, some stablecoins & utility tokens that will be classified as digital money without utility then they may fall in the same class as Bitcoin.
However, the report from the FCA was not all roses and sunshine for Bitcoin as the watchdog through in the jab that people need to be careful investing in digital currencies because they don't actually have any intrinsic value. Which is honestly hilarious because the same can definitely be said about paper money a.k.a. fiat. A printed piece of paper has no intrinsic value. But somehow, the top financial watchdog in the U.K. can't even understand that basic principle. It speaks to the financial brainwashing that has been going on for centuries.
To read more about this story & more, check out today's Bitcoin News video: