Rethinking Crypto-Regulation for Crypto-Investors in the UK

Joy Malala () and Folashade Adeyemo ()
Additional contact information
Joy Malala: University of Warwick
Folashade Adeyemo: University of Liverpool

Chapter Chapter 13 in Commercial Banking in Transition, 2024, pp 265-282 from Palgrave Macmillan

Abstract: Abstract Commercial banks profit by taking excessive risks with highly volatile financial assets, which contributed to the Global Financial Crisis (GFC). Financial Technology (FinTech) emerged as a response to the GFC, offering alternative financial intermediaries that traditional firms failed to provide. FinTech has made crowdfunding, peer-to-peer lending, payments, money exchanges, and virtual currencies like cryptocurrencies accessible. The COVID-19 pandemic showed that the crypto-market can be unpredictable, leading consumers to take risks. Financial institutions are offering crypto-derivatives and engaging with crypto-assets, which have proven to be volatile and detrimental to unsophisticated investors. Crypto-assets operate in non-territorial legal jurisdictions exempting them from regulations. The Financial Conduct Authority (FCA) and the European Securities and Markets Authority (ESMA) have taken measures to protect retail consumers from crypto-assets risks. Given their potential as an asset class and growing market participation, this chapter examines the ways in which the UK financial sector can monitor its risk exposure to emerging crypto-assets. It also proposes a crypto-market regulatory agency that supports retail investors and scheme-level regulation and self-regulation to reduce risks.

Date: 2024
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:pmschp:978-3-031-45289-5_13

Ordering information: This item can be ordered from
http://www.palgrave.com/9783031452895

DOI: 10.1007/978-3-031-45289-5_13

Access Statistics for this chapter

More chapters in Palgrave Macmillan Studies in Banking and Financial Institutions from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().