NEW WORLD 360 | Crypto Hearsay
Chairwoman of the Treasury Select Committee Nicky Morgan said she would consult experts on the issue.While the value of cryptocurrencies like bitcoin have rocketed in value over the past 12 months, there have been warnings from some experts saying prices could plummet just as quickly, which could leave many investors out of pocket.Ms Morgan told the Evening Standard: “We are going to look at the whole issue of cryptocurrencies. Clearly there is a concern… the Financial Conduct Authority and the Bank of England have said people need to be very aware that they could lose everything in terms of bitcoin.“You don’t want people who can’t afford to get their fingers badly burnt to run into problems.”
Bitcoin is a virtual currency that was created in 2009 – and the total value of all bitcoins in existence is now more than £185billion.Its price has soared around 1,500 per cent over the past year or so – attracting millions to buy parts of the currency online – but has taken a tumble since last month.The US financial markets have embraced the currency far more than the City, opening two future bitcoin exchanges.Ms Morgan said it was too soon for Britain to follow suit when so many questions remained about its safety and lack of regulation.
She said: “London should watch that with interest but I think we should take our time to really understand the risks first.” However she continued: “We don’t want to stamp out innovation. If we’re going to be global Britain, we have to encourage innovation, technology and be at the forefront of all this.”Bitcoin price took a hit after the Chinese Government decided to target bitcoin mining amid concerns of power usage and South Korea proposed to ban local cryptocurrency exchanges.Bitcoin was down as much as 23 percent for the week, on track for its deepest decrease since January 2015, according to Bloomberg.
Bitcoin isn’t the only cryptocurrency seemingly facing struggling conditions, Ripple and ethereum also faced a sell-off over the South Korean trading bans.South Korea is among the world’s largest cryptocurrency markets and a ban on trading would dry up liquidity in the virtual currencies.The South Korean Government’s intention is to ban anonymous cryptocurrency trading, rather than trading in general, to ensure traders comply with its rules.A Treasury spokesman told Express.co.uk that there had been no official decision on holding an inquiry.