According to information provided by Reuters on December 11, CEO of the company Allianz Global Investors which manages the assets estimated at $595 billion announced about a necessity to have crypto assets ‘outlawed’.
Andreas Utermann told about this fact on Tuesday. He and other representatives of the UK financial system were present at a panel and his remark was announced there too.
Utterman has commented the current crash of cryptocurrency market and admitted being surprised that “regulators haven’t stepped in harder,”. That is why he urged them to make crypto assets “outlawed” at the official level.
As Utterman was sitting next to Andrew Bailey, the head of the FCA (Financial Conduct Authority), the last one provided a counterargument calling cryptos rather strong though lacking “intrinsic value”. Bailey also told that cryptocurrencies were analyzed rather carefully and the activity of Initial Coin Offering was followed too.
According to the reports made in the previous month, the crash of the cryptocoin market led to pressure on the British regulators and urging them to develop new rules to be used in this sector. He also supposed that government and FCA officials will have more time to find balance on how to protect token holders and foster innovations in the Financial sphere.
FCA representative admitted that the organization is thinking about banning crypto contracts-for-difference (CFDs) telling that there is a complexity, volatility and always leveraged derivatives products created on the basis of exchange tokens with underlying issues of market integrity.
There are two basic types of crypto assets: crypto derivatives are regulated by the FCA while crypto spot market activities are out of the perimeter of this organization. At the end of October, Cryptoassets Taskforce of the UK government offered a new crypto asset classification that includes three types and is based on how they are used.