Members of the British Parliament told the head of FCA Nikhil Rathi that buying Bitcoin and other cryptocurrencies is not an investment, and such formulations should not be used in relation to them, The Times.
“The words ‘your investments’ equate this with a FTSE 100 company or a mutual fund,” said Harriet Baldwin, a member of the House of Commons, at the committee meeting.
She also noted that the regulator’s published list of unregistered crypto companies could aid money-laundering attempts.
“This should be useful, but the list could also be used by those who simply want to launder money,” added the MP and former JPMorgan employee.
Nikhil Rathi told MPs he would think about what the wording should be.
“Personally, I would simply say that anything related to cryptocurrency should not be eligible for compensation, so that consumers know this when they invest,” he added.
Information about a possible exclusion of crypto investors from the Financial Services Compensation Scheme became known in early December.
Earlier, the regulator repeatedly warned consumers about the risks of investing in digital assets. In September, Rathi said that investors “should be prepared to lose all their money”.
According to a survey, one in ten British adults already owns digital assets, and 11% are considering purchasing them.
Other studies showed that for 45% of young Britons cryptocurrencies became the first investments, but the main motive for investing was the hype around the assets.
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