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UK regulator warns crypto investors risk losing ‘all their money’

Concerns include price volatility, product complexity and the lack of consumer protection regulation.
Image: Chris Ratcliffe, Bloomberg
The U.K.’s financial watchdog has a stark warning for consumers looking to profit from the latest crypto boom: be ready to lose everything.“Investing in cryptoassets, or investments and lending linked to them, generally involves taking very high risks with investors’ money,” the Financial Conduct Authority said in a statement Monday. “If consumers invest in these types of product, they should be prepared to lose all their money.”

The FCA’s concerns include price volatility, the complexity of products offered and the lack of consumer protection regulation around many of the products.

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The price of Bitcoin, the largest cryptocurrency, has more than quadrupled in the past year, evoking memories of the 2017 mania that first made cryptocurrencies a household name before prices collapsed just as quickly. It slid as much as 21% over Sunday and Monday and fell below $32,400. That’s the biggest two-day slide since global markets were first roiled by the pandemic last year and follows a record high of almost $42,000 on Jan. 8.

Read:
Why Bitcoin’s price is at an all-time high
After bitcoin’s explosive rally in 2020, what will 2021 bring?

© 2021 Bloomberg L.P.

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I’d rather bet on BTC (or crypto) rather than a Ponzi/MLM scheme (whether the latter is in Fiat or crypto).

Know the difference!

I’d rather bet on Fancy Boy in the third at Kenilworth Racecourse on Saturday …

.. fancy boy is probably owned and bred by the guy who bought R10 000 worth of btc in April 2012, when it was 64c a share.
No other investment has ever grown like this mysterious semi-fictitious anomoly.

When a regulator comes out with a warning of this magnitude expect fireworks in a few weeks’ time.

There is a clear distinction between professional investing and gambling , and if something is to good to be true….. exercise maximum caution…. In todays investment market, as under all market conditions,a promise / suggestion or “guarantee” of outsize returns should be regarded as a “red flag” immediately…

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