UK regulator warns of risks in cryptocurrency investments

Executive Director of the FCA Nikhil Rathi (Nikhil Rathi) reminded investors of the risk of losing funds when dealing with digital assets and announced that the agency intends to pursue a bolder approach when examining serious violations.

Following the measures taken to protect consumers during the #covid19pandemic, we must now seize opportunities in a changing sector and society. CEO Nikhil Rathi discusses our response to the current #financialservices landscape. https://t.co/PbciqJZpHB

— Financial Conduct Authority (@TheFCA) September 22, 2021

“As you all know, we have repeatedly warned investors in crypto products that they should be prepared to lose all their money,” said Rathi. “The FCA has often been criticised for taking too cautious actions. The situation is changing. We are applying a bolder approach when considering serious violations.”

In January 2021, the FCA published a list of five issues that cryptocurrency investors should take into account:

• limited consumer protection;
• high volatility of crypto assets;
• the complexity of products in this space;
• potential hidden fees and charges;
• misleading marketing materials.

Since then the agency has taken a series of measures against the digital assets industry. In particular, the FCA banned Binance’s local unit from engaging in any regulated activity without prior written approval.

Earlier, the FCA estimated that the number of cryptocurrency investors in the United Kingdom had risen to 2.3 million.

Earlier in September, the FCA warned of tighter regulation of the crypto industry to protect consumers.

Subscribe to ForkLog news on VK.