New rules on cryptocurrencies announced by the U.K.'s Financial Conduct Authority should provide stronger consumer protection and reduce scams but doesn't completely remove risks, AJ Bell's Dan Coatsworth says in a note. "Investors will still need to ensure they understand that crypto prices often exhibit wild swings and that the asset class is driven purely by speculation," he says. Crypto firms operating in the U.K. will need to undertake stress tests to prove they can withstand market shocks and hold adequate capital as a financial buffer in the case of losses as part of the FCA's new rules. (renae.dyer@wsj.com)
Dow Jones Newswires
U.K.'s New Crypto Rules Won't Completely Remove Risks to Consumers — Market Talk
New rules on cryptocurrencies announced by the U.K.'s Financial Conduct Authority should provide stronger consumer protection and reduce scams but doesn't completely remove risks, AJ Bell's Dan Coatsworth says in a note. "Investors will still need to ensure they understand that crypto prices often…