Anti-crypto bias is gaining pace in the UK just days after the Financial Conduct Authority’s (FCA) ban on crypto-derivatives’ retail sale went into effect.
The latest attempt to stifle digital assets in the UK comes from independent financial advisor (IFA) and managing director of West Riding Personal Financial Solutions, Neil Liversidge.
The professional advisor recently launched a petition to halt crypto transactions in the UK. He argued that cryptocurrencies are a con and that his initiative would protect citizens from falling victim to online scammers.
“If the UK government takes a lead by banning crypto transactions as my petition requests, that will set off a chain reaction, crashing cryptos overnight,” he asserted.
Liversidge is a staunch crypto critic, whose firm requires a guarantee from every fund manager that they won’t invest in crypto. He claims that the proposed ban would destroy the financial base of criminals who use digital assets for nefarious activities.
The IFA also attacked Initial Coin Offerings, claiming that they help legitimate private crypto businesses entering the market with no proven track record of trading.
Mounting Calls to Stop Cryptocurrencies
Liversidge shares UK financial regulators’ concerns that crypto investments are highly likely to be exploited by scammers and criminals.
On a similar note, European Central Bank President Christine Lagarde recently highlighted the rampant use of crypto for money laundering activities. She called for stricter regulation of the nascent digital asset class that has come out of its niche in recent years to gain wide acceptance from retail traders, investment funds, and corporations.
There are increasing efforts from regulators worldwide to monitor the crypto space, which is mostly lightly overseen or unregulated in most jurisdictions.
However, such efforts are very unpopular among crypto users, who turn to the asset class’s largely anonymous nature for financial freedom.
In July of 2020, the FCA received overwhelmingly negative feedback during public consultations for its crypto derivatives ban, with 97% of respondents opposing the proposals.
Many in the crypto sphere view the push for more financial surveillance in the digital assets sector as biased. For instance, Jack Dorsey, the CEO of Square Inc., recently penned a comment letter protesting draconian FinCEN proposals against crypto.
The billionaire investor claimed that the rules are a breach of users’ privacy and they go far beyond what is required for cash transactions today.
Pushback From The Crypto Community
A growing number of industry players are standing up against crypto bans and overall heightened identification requirements for crypto transactions.
Some legislators, such as incoming US senator Cynthia Lummis, have also publicly supported Bitcoin and other crypto assets.
As regulators globally push numerous rules against digital assets, the crypto community will likely ramp up efforts to rally against the infringement of their right to privacy and financial freedom.