‘Prepare to lose all your money’ — regulator’s blunt warning on bitcoin and other cryptocurrencies

The U.K.’s financial regulator on Monday issued a very blunt warning about the rise of bitcoin and other cryptocurrencies.

“
“If consumers invest in these types of product, they should be prepared to lose all their money.�
�


— U.K. Financial Conduct Authority

The warning was prompted by firms “offering investments in cryptoassets, or lending or investments linked to cryptoassets, that promise high returns,� the Financial Conduct Authority said.

The regulator said it had five concerns: Consumer protection, price volatility, product complexity, charges and fees, and marketing materials. “There is no guarantee that cryptoassets can be converted back into cash. Converting a cryptoasset back to cash depends on demand and supply existing in the market,� the regulator said.

The market cap of bitcoin and other cryptocurrencies topped $1 trillion last week, according to CoinDesk. Bitcoin
BTCUSD,
-0.13%

over the last 12 months has gained 330%.

Bitcoin, ethereum
ETHUSD,
-1.18%

and other cryptocurrencies tumbled on Monday, with double-digit percentage declines.

Source link

The post ‘Prepare to lose all your money’ — regulator’s blunt warning on bitcoin and other cryptocurrencies appeared first on TechFans.

Share