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Opinion

Trustology tries to bring security to crypto investing

As entrepreneurs seek to improve institutional-grade custody and security for trading in crypto assets, conventional financial market participants remain suspicious.

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Euromoney receives an email from Daniel Masters, executive chairman of CoinShares, a pioneer of exchange-traded products for investing in bitcoin and other cryptos, urging us to email the UK’s Financial Conduct Authority (FCA).

Back in July, the UK regulator announced it was consulting on a proposed ban on the sale to retail investors of derivatives and exchange-traded notes referencing crypto assets.

The FCA considers these products ill-suited to retail consumers due to the underlying assets having no reliable basis for valuation; the extreme volatility in prices; the prevalence of market abuse and financial crime, including cyber theft, in the secondary market for cryptos; inadequate understanding by retail consumers and the lack of a clear investment need for products referencing them.

This strikes me as perfectly obvious.

Alex Batlin - Trustology_160x186
Alex Batlin,
Trustology

But CoinShares reckons it will harm its business. It claims the FCA’s analysis of crypto assets and these associated instruments demonstrates a lack of understanding of their functionality and value and the motivations for investors to seek them out. 




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