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.
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.