UK Regulator Warns About the Risks of Investments in Cryptoassets

The Financial Conduct Authority (FCA), the UK's financial industry regulator, is alarming investors against the risks of investing in cryptocurrencies and non-fungible tokens (NFTs).

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"We have seen some recent social media posts regarding cryptoassets and non-fungible tokens (NFTs),"the regulator stated."The FCA has not been given regulatory oversight over direct investments in cryptoassets and NFTs. There are no consumer protections for those who buy any cryptoassets and NFTs, and they are not FSCS protected. As a result, if you buy cryptoassets you should be prepared to lose all the money you invest."

In addition, the FCA highlight that those marketing cryptoassets must stick to the guidelines set out by the Advertising Standards Authority (ASA) and state that cryptoassets are not regulated by the FCA. Marketing must also make clear that cryptoassets are not protected by financial compensation schemes.

Recently, many countries around the world turned eyes to crypto industry and have issued multiple ‎legislation. The government of Uzbekistan has moved to expand its crypto regulations through a decree signed by President Shavkat Mirziyoyev. The document provides definitions for terms like crypto assets, exchange, and mining, and determines the main regulatory body for the industry.

Belgium's financial watchdog also announced that any legal person established in Belgium that wants to provide exchange services between virtual currencies and legal currencies, or custody wallet services, within Belgium will have to register with the FSMA in advance.