The Financial Conduct Authority of Great Britain, the Financial Conduct Authority (FCA), has posted a warning about crypto investment amid a huge slump in the market.
In a statement today (Jan. 11), the FCA stated that investing and lending cryptocurrency has a high level of risk, while emphasizing that investors should be willing to lose all their money. when investing in this market.
Citing a number of risks including price volatility, product complexity and fees and charges, the FCA said:
Users should be aware of the risks and consider carefully whether investing in highly profitable investments based on cryptocurrencies is right for them. They should carefully examine and review the business operations related to cryptocurrencies.
The regulator also claims that crypto investors do not have access to major consumer protection organizations such as the Financial Ombudsman Service or the Financial Services Compensation Program. Financial Services Compensation Scheme if something goes wrong.
FCA notes that companies providing crypto-related services must ensure that they comply with all relevant regulatory requirements and are authorized by the FCA. Beginning January 10, 1, all UK-based crypto companies must be registered with the FCA in accordance with the regulations to address money laundering, the agency writes:
Operating without registration is a criminal offense
The FCA's crypto warning comes amid a sharp decline in the market after Bitcoin recorded a new all-time high at $ 42.000 on Jan. 8.
On Jan. 11, BTC saw a massive sell-off as it briefly fell below the $ 1 threshold. As of this moment, BTC is trading around $ 33.000, down about 35.000% over the past 14 hours.
This latest decline is not exclusive to Bitcoin as the top 10 are all falling sharply, as Ethereum (ETH) is down nearly 19%.