Chief Executive Officer and global chief investment officer of Allianz Global Investors, Mr. Andreas Utermann, has stated that regulators should ban digital currencies.
As per a report from Reuter, Mr. Andreas Utermann was speaking during a panel discussion in London alongside Mr. Andrew Bailey chief executive of U.K.’s Financial Conduct Authority (FCA).
He stated, “You should outlaw crypto assets,” as many have lost savings due to the significant slump in the crypto markets. “I am personally surprised that regulators haven’t stepped in harder.”
Mr. Andrew Bailey, who is also an executive director of the Bank of England, stated that Mr. Utermann remarks were ‘pretty strong’ while adding that digital currencies have “no inherent value.”
The central bank executive also stated that regulators in the U.K. are ‘closely monitoring’ developments in the cryptocurrency sector, including Initial Coin Offerings (ICOs).
The digital currency market has seen a sharp decline in value since the start of this year. In December 2017, Bitcoin rose to almost $20000, but since then prices nosedived, and the global average across exchanges was $3,431 at press time. The difference marks an over 80 percent slump in value over the period. Most other digital currencies, including ethereum and Ripple (XRP), have likewise been hit hard by the bear mood pervading the market.
The FCA created a task force prior this year to ‘develop thinking and policy’ around digital currencies and blockchain. The group is evaluating the impact and the possible benefits of the technology and will determine if, and what, rules might be needed in response to its findings.
The watchdog stated last month, although that it was considering a ban on some digital currency-based derivatives over concerns that retail investors are being sold “complex, volatile and often leveraged derivatives products” with “underlying market integrity issues.”