The FCA Have Just BANNED Crypto Derivatives ❗ What Does It Mean For You!? 🤔
Are you buying cryptocurrency? Get ready to lose it all – FCA
British regulator warned of the threat of losing all funds due to investments in cryptocurrencies
Tighter crypto business rules have been in effect in the UK since January
The regulator banned the sale and advertising of cryptocurrency derivatives
British regulator warns that investments in cryptocurrency may result in an irrecoverable loss of all money
The Financial Conduct Authority (FCA) has warned investors in cryptocurrency assets that they are at risk of losing everything. This was reported on the official website of the regulator..
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It is noted that investing and cryptocurrency lending are associated with high risks of losing money.
“If consumers invest in this type of product, they must be willing to lose all their money,” the FCA website says..
In particular, the regulator refers to price volatility, the complexity of products and the lack of regulation of consumer protection in the cryptocurrency market..
Alone with the risks
The regulator also recalled that the loss of invested funds in cryptocurrencies is not covered by the compensation program in the financial services industry..
Also, FCA representatives reminded that starting from January 10, 2021, all British cryptocurrency companies must register with the FCA in accordance with the anti-money laundering requirements..
Also, since January, tightened advertising for cryptocurrency derivatives (such as CFDs, options, futures and exchange-traded index bills) came into effect..
In addition to the investors themselves, the restrictions proposed by the FCA also apply to cryptocurrency issuers, brokers and investment platforms, financial advisors, as well as cryptocurrency exchanges..
Since the beginning of 2021, the UK has strengthened the regulation of the cryptocurrency market. So, the editorial staff of BeInCrypto reported that the UK Treasury intends to tighten the circulation of stablecoins in the country, fearing that these coins will create competition for the traditional financial system..
However, not only in the UK they are wary of the cryptocurrency market. The editorial staff of BeInCrypto reported that the Central Bank of Russia included transactions with the circulation of digital currencies in the list of suspicious.
Domestic banks will begin to adhere to the new recommendations from October 2021.