The UKs regulator, the Financial Conduct Authority has proposed a ban on cryptocurrency products in an announcement today.
The FCA has claimed that cryptocurrency assets are not suited to small time or amateur investors and are very volatile. It added that crypto related financial instruments could result in huge losses for customers, particularly those that do not fully understand the risks. The authority also cited the fact that they were difficult to value and carried risks of being used for financial crime as reasons for the proposed ban.
They stated that if the ban is enforced, it could benefit consumers to the tune of between EUR 90 million and EUR 250 million a year. It would impact complex financial products including CFDs, exchange traded notes, and options and futures.
The FCA is set to publish a consultation paper on the potential ban and how it would affect the sale to retail clients of derivatives and certain transferable securities that reference cryptoassets.
Extremely bullish Bitcoin surpasses $11,000
Bitcoin has surpassed many expectations and jumped an impressive 20% in 24 hours to go beyond the $11,000 mark. Valued at $11,333 at the time of writing, it seems that Bitcoin has got over a few turbulent days that saw it drop as low as $9,688 before climbing to a high of $11,525 earlier today.
Its quick recovery left many media outlets and analysts red faced as they had predicted that the Bitcoin bubble had burst an “lost a third of its value in less than a week”.
Others however, were feeling optimistic at the new surge and have been speculating where it could end up. Trader Josh Rager said he believed it could settle around the $11,760 mark due to its “extremely bullish’ recovery.
In the long term however, it remains unknown how the impact of institutional trading will push up the price of the world’s leading cryptocurrency. This week, two trading platforms- ErisX and Binance confirmed they will offer Bitcoin futures, and Bakkt will begin testing its futures offering towards the end of July.
Nestle get onboard with Blockchain
One of the world’s largest food companies, Nestle has unveiled its plans for a blockchain-based pilot programme that will track food and ingredients through its supply chain.
According to a press release, consumers will now be able to track their food all the way back to the source, and through every step of the manufacturing process. Nestle will now be the first food and drink company to pilot blockchain technology in this way, heralding the way for greater transparency.
The programme will be in collaboration with OpenSC- a company founded by WWF Australia and The Boston Consulting Group Digital Ventures. Together, they created a platform that will allow anyone, anywhere, access to verifiable sustainability and supply chain data. The platform will first trace milk from farms in New Zealand to Nestle factories in the Middle East. After that pilot, the platform will be used to track palm oil that has been sourced in the Americas.
Magdi Batato, Executive Vice President, Head of Operations, Nestlé S.A. said, “We want our consumers to make an informed decision on their choice of products – to choose products produced responsibly. Open blockchain technology might allow us to share reliable information with consumers in an accessible way.”