UK regulator warns of risks of investing in cryptocurrencies
FCA chief executive Nikhil Rathi reminded investors of the risk of losing money when dealing with digital assets and announced the authority's intention to take a "bolder approach" while dealing with serious breaches.
As you all know, we have repeatedly warned investors in [cryptocurrency] products that they should be prepared to lose all their money," Rathi said. - The [FCA] has often been criticised for being too cautious. Now the situation is changing. We are taking a bolder approach when dealing with serious breaches.
In January 2021, the FCA published a list of five issues that cryptocurrency investors should consider:
Following this warning, the authority has taken a number of measures against the digital asset industry. In particular, the FCA banned the local unit of bitcoin exchange Binance from carrying out any regulated activities without prior written approval.
Earlier, the FCA estimated that the number of cryptocurrency investors in the UK had risen to 2.3 million.
As a reminder, in early September the FCA warned of increased regulation of the crypto industry to protect consumers.