U.K. identified key risks related to cryptoassets and commits to mitigate them

In the report published by U.K.'s Cryptoasset Taskforce, the Financial Conduct Authority (FCA), a financial regulatory body in the United Kingdom, "has made clear that in its view cryptoassets have no intrinsic value and investors should therefore be prepared to lose all the value they have put in." 

Cryptoasset Taskforce said that while "cryptoassets have the potential to bring benefits to markets, firms and consumers, there remains considerable risks that HM Treasury, the Bank of England and the FCA will take action to mitigate." The Taskforce has identified the key risks as:

• harm to consumers and market integrity
• the use of cryptoassets for illicit activities
• potential future threats to financial stability

In order to mitigate these risks, the Taskforce has committed to:

• clarify which cryptoassets fall within the existing regulatory perimeter and which fall outside
• clarify whether the regulatory perimeter requires extension to capture cryptoassets that have comparable features to specified investments, but currently fall outside the perimeter
• consider a potential prohibition of the sale to retail consumers of crypto derivatives 
• consider how regulation can meaningfully address the risks posed by exchange tokens, such as Bitcoin. The government will further explore whether and how exchange tokens, and related firms such as exchanges and wallet providers, could be regulated effectively
• implement one of the most comprehensive responses globally to the use of cryptoassets for illicit activities by applying and going further than the fifth EU Anti-Money Laundering Directive

(Source: Financial Conduct Authority)