The FCA Has 5 Entirely Reasonable Concerns About Cryptocurrency

CRYPTONAIRE LYWEEK

CRYPTO investment journal

The FCA Has 5 Entirely Reasonable Concerns About Cryptocurrency

The Financial Conduct Authority has urged consumers to do their research and assess the risks when dealing with cryptocurrencies.

The Financial Conduct Authority has issued a list of five concerns consumers should keep in mind when dealing with crypto.

The regulator cited price volatility, technical complexity, and other aspects that should be taken into account.

All of those risks should be well known.

The UK Financial Conduct Authority (FCA) issued a consumer warning about the risks of investing in cryptocurrency today. But it wasn’t scaremongering, instead, it was an acknowledgment of the risks that do exist in the industry.

In its warning, the FCA listed five main risks and concerns associated with “high-return investments based on cryptoassets,” including consumer protection, price volatility, product complexity, charges and fees, and marketing materials.

Firstly, the FCA reminded the general public that some digital assets—including the ones promising high returns—may not be regulated beyond anti-money laundering requirements. This implies that consumer safety is not guaranteed—like it’s often the case in the world of crypto.

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