The Financial Conduct Authority's (FCA) chief executive said on Thursday night that he saw no systemic threat in bitcoin and had no plans to pursue the government to bring it under the regulator's authority.
Speaking on BBC's Newsnight on Thursday, Andrew Bailey (left) reiterated a warning to investors that they could incur severe losses from buying the controversial cryptocurrency.
He said: "If you want to invest in bitcoin, be prepared to lose all your money."
Bitcoin is technically considered a commodity and therefore does not come under the FCA's regulatory oversight.
The FCA does not start regulating new markets without legislation from parliament or Brussels, and Bailey said that as long as the risks of a "very volatile" commodity were understood, he wouldn't press for regulation.
“I don’t think bitcoin is prevalent enough at the moment to be a systemic threat in the way we experienced during the financial crisis other threats," Bailey said.
He added: "It needs watching carefully but I don’t think we’re there yet."
On Friday, the price of bitcoin futures traded on the CBOE were up 4.06% at $17,051.