August 13, 2022

FCA warns of crypto investment risks as Bitcoin dives below $33K

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The United Kingdom’s financial regulator, the Financial Conduct Authority, has posted a warning about cryptocurrency investment amid a major crash on crypto markets.

In a Jan. 11 statement, the FCA said that crypto investment and lending are associated with a high level of risk, stressing that investors should be ready to lose all their money while investing in crypto.

Citing a number of risks including price volatility, product complexity, and charges and fees, the FCA said that investors are taking charge of crypto-associated risks:

“Consumers should be aware of the risks and fully consider whether investing in high-return investments based on cryptoassets is appropriate for them. They should check and carefully consider the cryptoasset business involved.”

The regulator also stated that crypto investors are unlikely to have access to major consumer protection institutions like the Financial Ombudsman Service or the Financial Services Compensation Scheme if something goes wrong.

The FCA noted that companies offering crypto-related services should make sure that they comply with all relevant regulatory requirements and are authorized by the FCA. Starting from Jan. 10, 2021, all United Kingdom-based crypto asset firms must be registeredTitle: FCA warns of crypto investment risks as Bitcoin dives below $33K
Sourced From: cointelegraph.com/news/fca-warns-of-crypto-investment-risks-as-bitcoin-dives-below-33k
Published Date: Mon, 11 Jan 2021 08:32:23 +0000