A group of U.K. lawmakers has called for more oversight and regulation of the cryptocurrency industry in a new report published Wednesday.
Arguing that “crypto-assets have no inherent value,” are “especially risky” for retail investors and are “particularly vulnerable to manipulation,” the report states that “the introduction of regulation [to the cryptocurrency space] should be treated as a matter of urgency.”
The report comes roughly seven months after the U.K. Treasury Committee first announced it would look into the benefits and risks of cryptocurrencies.
The group wants to give the Financial Conduct Authority (FCA), the U.K.’s top financial regulator, more authority to regulate crypto markets. The report notes that organizers of initial coin offerings (ICOs), at present, can exploit certain loopholes to avoid scrutiny from the agency.
“Apart from drawing attention to the risks, there is little the FCA can do to protect individuals from being defrauded or losing their money. This is because most ICOs do not promise financial returns, but instead offer future access to a service or utility, meaning they fall outside the regulatory perimeter,” the report states.