“Consumers must be made aware of the dangers of crypto-currencies” – MacManus

Sinn Féin MEP Chris MacManus has said the latest drop in the value of Bitcoin and other cryptocurrencies re-emphasises the need for wider awareness of the dangers of cryptocurrencies and for financial regulators to be vocal on these dangers. MacManus was speaking after the British Financial Conduct Authority yesterday warned that ‘If consumers invest in these types of product, they should be prepared to lose all their money’.

MEP MacManus said:

“The latest drop in the value of Bitcoin by over 10% in a single day shows how volatile and dangerous an investment it is. The message of ‘buyer beware’ is especially relevant when it comes to these types of cryptocurrencies. I welcome the strong warning from the Financial Conduct Authority in Britain and believe the Irish Central Bank and the ECB should be more vocal about these so-called currencies.

“The EU has published proposals for regulating this area as well as the related Distributed Ledger Technology (DLT). I have been appointed by my Parliament’s political group as spokesperson on these issues and will seek maximum regulation and consumer protection. 

The Midlands Northwest MEP urged caution to potential investors. “My message to people tempted by Bitcoin or other crypto-currencies is to seek alternatives that are not so volatile. We must also ask who benefits from use of such currencies with research from Australia showing that nearly half of all Bitcoin transactions form part of illegal activity.”

MacManus concluded: “Some countries are already experimenting with their own digital currencies which could radically reform how we go about our financial lives but which will have some democratic accountability and transparency, something Bitcoin and its ilk will never have.” ENDS