The U.K.â€™s financial regulator on Monday issued a very blunt warning about the rise of bitcoin and other cryptocurrencies.
â€œIf consumers invest in these types of product, they should be prepared to lose all their money.â€�
The warning was prompted by firms â€œoffering investments in cryptoassets, or lending or investments linked to cryptoassets, that promise high returns,â€� the Financial Conduct AuthorityÂ said.
The regulator said it had five concerns: Consumer protection, price volatility, product complexity, charges and fees, and marketing materials. â€œThere 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,â€� the regulator said.
The market cap of bitcoin and other cryptocurrencies topped $1 trillion last week, according to CoinDesk. Bitcoin
over the last 12 months has gained 330%.
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