An association of ministers of parliament has appealed to take measures to regulate the use of Bitcoin and other similar virtual currencies citing them as Wild West trading. They expressed concerns in order to give protection to the investors. The committee said that the risks involved included unstable pricing, account hacking, no protection for the consumers and frauds. They said that in the lack of presence of a proper functioning of these digital currencies, they preferred to call them as crypto assets. They have requested the Financial Authority to keep a check on these activities. Till now, the authorities for financial conduct do not have any right to investigate into either the affair of these currencies or the grounds on which they are exchanged. The investors, at present, have got no security from the huge risk that they are prone to when dealing in the currency trading. There is no proper system for the consumers to lodge complaints for any discrepancy and compensation.
The number of these crypto assets has increased to up to 150 on various exchanges across the globe. The prices keep rising and falling at an alarming rate. Last year only, prices for Bitcoin went up to 15000 pounds and then crashed to less than half of its value in just a matter of few months. The fund raising projects involving these currencies have always been tough to regulate at all places across the world. Amidst speculation that whether the government will start any rules and regulations to control the trading activities and give assurance to the consumers, the crypto currency trading is still going on full-fledged giving way to rising concerns for the investors.
The chairman of the committee said that there should be a minimum effort by the government to safeguard the consumer’s interest and regulate frauds related to money. In UK, a self regulatory system called CryptoUK was formed this year in the month of February which applauded the suggestion of the above committee.