Back at the start of the pandemic, the U.K. Financial Conduct Authority appealed to the country’s bankers and traders. In such stiff-upper-lip-requiring times, it was relying on all of them to be good chaps and lasses by living up to the good old British belief in fair play, mostly because it didn’t have a choice in the face of technological growing pains in the lockdown that prevented it from keeping an eye and ear on them. Guess how well that went.
The Financial Conduct Authority found examples of possible insider dealing in 21.9% of the activity it monitored in 2020, up from 17.5% in the previous year.
And that’s not all its new CEO is dealing with.
Speaking as the regulator launched its new business plan on 15 July, chief executive Nikhil Rathi said that the FCA remained concerned over how many investors — particularly those falling into younger and ethnic minority demographics — were ploughing savings into asset classes that could potentially leave them penniless.
No points for guessing which asset classes he’s talking about. Here’s a hint: It’s one that’s not quite yet ready to nuke the global financial system just yet.
“The speculative boom in crypto is very noticeable but I don’t think it’s crossed the boundary into financial stability risk,” [Jon] Cunliffe told CNBC’s Joumanna Bercetche in an exclusive interview…. “There are issues of investor protection here. These are highly speculative assets,” he said. “But they’re not of the size that they would cause financial stability risk, and they’re not connected deeply into the standing financial system.”
Oh, you mean like everyone seems to want them to be with the exception of this guy?
[Dogecoin co-creator Jackson] Palmer criticized those in power in the cryptocurrency space, saying that it is “controlled by a powerful cartel of wealthy figures” who “have evolved to incorporate many of the same institutions tied to the existing centralized financial system they supposedly set out to replace.”
FCA suspects insider dealing in almost 25% of activity in 2020 [FN]
FCA to warn investors of cryptocurrency risks in £11m marketing campaign [FN]
Cryptocurrencies don’t yet pose a threat to financial stability, Bank of England’s Cunliffe says [CNBC]
The co-creator of dogecoin explains why he doesn’t plan to return to crypto: It’s ‘controlled by a powerful cartel of wealthy figures’ [CNBC]
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