The warning comes after the currencies’ ever-climbing value dropped again
FCA: be prepared to lose all your money. Source: pexels.com
The Financial Conduct Authority has warned that Bitcoin users could lose their investments.
Based on the significant price uncertainty, consumers who have invested in the currency should be ready to lose their money. To protect them from this, the FCA mandates all firms offering crypto-asset related products to be duly registered by the authority. Firms operating without a license will face criminal charges. Just recently, the FCA banned the sale of cryptocurrency derivatives to retail investors.
The value of Bitcoin has risen to an all-time high of $41,973. However, the currency dropped by almost $9,000 and fell below $33,000.
Meanwhile, a consultation on the regulation of stablecoins and crypto assets has been initiated by the UK’s finance ministry. The consultation seeks to gain opinions and views on the benefits of competition, supporting innovation, and new technologies. It also aims to ensure a reduction of risks to consumers.
Participants are requested to provide evidence on the wholesale benefit of crypto assets and the use of distributed ledger technologies. Stablecoins could benefit the market in several ways such as paving the way for cheaper and faster payments.
We’ve reported that Bitcoin is set to hit $50,000 and a market cap of about $1 trillion.
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