- The UK Financial Supervisory Authority has warned that consumers may “lose all of their money” if they invest in cryptocurrencies such as Bitcoin.
- Bitcoin reached an all-time high of around $ 42,000 on Friday, but has since fallen sharply to around $ 35,000.
- Regulators are increasingly interested in cryptocurrencies like Bitcoin and have increased their interest in digital assets.
- Visit Business Insider’s homepage for more stories.
The UK financial regulator has warned that consumers who invest in cryptocurrencies may “lose all of their money”, as Bitcoin The price retreated from an all-time high of around $ 42,000.
Bitcoin’s staggering rise of more than 300% over the past year has captured the attention of the public and institutional investors alike. But the cryptocurrency is highly volatile, down about 15% from A. A record high of about $ 41,800 Friday to $ 34,645 Monday.
The obsession with cryptocurrencies also caught the watchful eyes of financial regulators around the world. They worry that amateur investors might be attracted, only to currencies like Bitcoin that collapse in value, as they did in 2018.
British Financial Conduct Authority (FCA) Put it blatantly: “If consumers invest in these types of products, they should be prepared to lose all of their money.”
Read more: The chief information officer for a $ 500 million crypto asset manager breaks down 5 ways to evaluate bitcoin and decide whether to own it after the $ 40K digital asset breaks out for the first time.
The watchdog said it was concerned that some companies were making investments in cryptocurrencies or related products in their bid to take advantage of the rally.
“The significant price volatility in crypto assets, combined with the inherent difficulties in reliably valuing crypto assets, places consumers at great risk of losses,” she said in a statement.
“The complexity of some products and services related to groups of cryptocurrencies can make it difficult for consumers to understand the risks,” she added.
“There is no guarantee that crypto assets can be converted back into cash. The conversion of crypto assets into cash depends on the supply and demand in the market.”
Memories The crash in the Bitcoin price Between late 2017 and early 2019 – when it dropped from nearly $ 20,000 to less than $ 4,000 – it weighs on the organizers.
The FCA also stressed that cryptocurrencies like Bitcoin are largely unregulated. It said it was unlikely that investors would resort to compensation or complaints “if something went wrong.”
Regulators are trying to tighten the rules around cryptocurrencies. Since Sunday, the Financial Conduct Authority (FCA) has required all UK cryptocurrency companies to be registered with them as part of the regulations to tackle money laundering.
The US Financial Crime Network in December floated the idea Companies may be required to collect information On holders of cryptocurrency wallets.
Twitter CEO Jack Dorsey, who also runs the payments company Square, is among the many critics The idea, for which the unregulated nature of cryptocurrencies is one of the main attractions in the market for it.
Профессиональный решатель проблем. Тонко обаятельный любитель бекона. Геймер. Заядлый ботаник. Музыкальный новатор