Andreas Utermann, managing director and general manager of Allianz Global Investors' investments, said that cryptocurrencies should be banned by regulators.
According to a Reuters report, Utermann spoke during a discussion in London with Andrew Bailey, managing director of the Financial Conduct Authority (FCA) of U.K.
He said, "You should banish [crypto assets], "Because many have lost savings due to the significant collapse of the encrypted markets." I am personally surprised that the regulators have not made themselves harder ".
Bailey, who is also executive director of the Bank of England, said that Utermann's comments are "strong enough", adding that cryptocurrencies have "no intrinsic value".
The head of the central bank also said that regulators in the United Kingdom are "closely observing" developments in the cryptography sector, including initial offers of coins or ICOs.
Cryptographic markets have seen a sharp decline in value from the start of this year. In December 2017, the bitcoin peaked at almost $ 20,000, but prices plummeted and the global stock exchange average was $ 3.387 at the time of the press. The difference marks a decline in the value of over 80% in the period. Most other cryptocurrencies, including ether and XRP, have also been severely affected by the mood of the bear pervading the market.
At the beginning of this year, the FCA set up a task force for "developing thought and politics" around cryptocurrencies and blockchains. The group is evaluating the impact and potential benefits of the technology and will determine if and which rules may be necessary in response to its results.
The watchdog said last month, however, that it was considering the prohibition of certain cryptocurrency-based derivatives against concerns for retail investors selling "complex, volatile and often leveraged derivative products" with "underlying market integrity issues".
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