{"id":4756,"date":"2021-01-11T16:24:05","date_gmt":"2021-01-11T16:24:05","guid":{"rendered":"https:\/\/www.futuresandoptions.gr\/en\/?p=4756"},"modified":"2021-01-11T16:24:08","modified_gmt":"2021-01-11T16:24:08","slug":"fca-warns-consumers-of-the-risks-of-investments-advertising-high-returns-based-on-cryptoassets","status":"publish","type":"post","link":"https:\/\/www.futuresandoptions.gr\/en\/fca-warns-consumers-of-the-risks-of-investments-advertising-high-returns-based-on-cryptoassets\/","title":{"rendered":"FCA warns consumers of the risks of investments advertising high returns based on cryptoassets"},"content":{"rendered":"\n<p>The FCA is aware that some firms are offering investments in cryptoassets, or lending or investments linked to cryptoassets, that promise high returns. Investing in cryptoassets, or investments and lending linked to them, generally involves taking very high risks with investors\u2019 money. If consumers invest in these types of product, they should be prepared to lose all their money.&nbsp;<\/p>\n\n\n\n<p>As with all high-risk, speculative investments, consumers should make sure they understand what they\u2019re investing in, the risks associated with investing, and any regulatory protections that apply.<\/p>\n\n\n\n<p>For cryptoasset-related investments, consumers are unlikely to have access to the\u00a0Financial Ombudsman Service\u00a0(FOS) or the\u00a0Financial Services Compensation Scheme\u00a0(FSCS) if something goes wrong. Consumers can find out more about which cryptoasset activities the <a href=\"https:\/\/www.futuresandoptions.gr\/en\/fca-establishes-temporary-registration-regime-for-cryptoasset-businesses\/\">FCA<\/a> regulates in\u00a0PS19\/22: Guidance on Cryptoassets.<\/p>\n\n\n\n<p>Consumers should be wary if they\u2019re contacted out of the blue, pressured to invest quickly or promised returns that sound too good to be true. Visit the FCA\u2019s&nbsp;<a href=\"https:\/\/www.fca.org.uk\/scamsmart\">ScamSmart<\/a>&nbsp;pages for more information on how consumers should protect themselves from fraud.<\/p>\n\n\n\n<p>Firms offering these products should make sure they comply with all relevant regulatory requirements and are authorised by the FCA where this is required. Since 10 January 2021, all UK cryptoasset firms must be registered with the FCA under regulations to tackle money laundering. Operating without a registration is a criminal offence.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What are the risks?<\/h2>\n\n\n\n<p>The FCA\u2019s concerns about high-return investments based on cryptoassets include:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Consumer protection<\/strong>: Some investments advertising high returns based on cryptoassets may not be subject to regulation beyond anti-money laundering requirements.&nbsp;<\/li><li><strong>Price volatility<\/strong>: Significant price volatility in cryptoassets, combined with the inherent difficulties of valuing cryptoassets reliably, places consumers at a high risk of losses.<\/li><li><strong>Product complexity<\/strong>: The complexity of some products and services relating to cryptoassets can make it hard for consumers to understand the risks. There is no guarantee that cryptoassets can be converted back into cash. Converting a cryptoasset back to cash depends on demand and supply existing in the market.&nbsp;<\/li><li><strong>Charges and fees<\/strong>: Consumers should consider the impact of fees and charges on their investment which may be more than those for regulated investment products. &nbsp;<\/li><li><strong>Marketing materials<\/strong>: Firms may overstate the returns of products or understate the risks involved.<\/li><\/ul>\n\n\n\n<p>Consumers should be aware of the risks and fully consider whether investing in high-return investments based on cryptoassets is appropriate for them. They should check and carefully consider the cryptoasset business involved.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What to do:<\/h2>\n\n\n\n<p><strong>Step 1<\/strong>: Consumers should check if the firm they\u2019re using is on the&nbsp;<a href=\"https:\/\/register.fca.org.uk\/s\/search?predefined=CA\">Financial Services Register<\/a>&nbsp;or&nbsp;<a href=\"https:\/\/register.fca.org.uk\/servlet\/servlet.FileDownload?file=0154G0000062BtF\">list of firms with Temporary Registration<\/a>&nbsp;(Note: appearing on the Temporary Registration Register does not mean that the FCA has assessed them as fit and proper, nor that the FCA has determined their application for the purposes of the Money Laundering Regulations).<\/p>\n\n\n\n<p><strong>Step 2<\/strong>: If they\u2019re not, consumers should ask the firm whether they are entitled to carry on business without being registered with the FCA.&nbsp;<\/p>\n\n\n\n<p><strong>Step 3<\/strong>: If they\u2019re not, the FCA suggests that consumers should withdraw their cryptoassets and\/or money. This is because the firm is operating illegally if it has not ceased trading by 9 January 2021.<\/p>\n\n\n\n<p>Visit the FCA\u2019s&nbsp;<a href=\"https:\/\/www.fca.org.uk\/consumers\/cryptoassets\">Cryptoassets pages<\/a>&nbsp;for more information.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The FCA is aware that some firms are offering investments in cryptoassets, or lending or investments linked to cryptoassets, that promise high returns. Investing in cryptoassets, or investments and lending linked to them, generally involves taking very high risks<\/p>\n","protected":false},"author":2,"featured_media":4757,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[352,812,1123,14],"tags":[1269,1097,933],"class_list":["post-4756","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin","category-cryptocurrencies","category-finreg","category-financial-news","tag-cryptoassets","tag-fca","tag-regulatory"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>FCA warns consumers of the risks of investments advertising high returns based on cryptoassets -<\/title>\n<meta name=\"description\" content=\"The FCA is aware that some firms are offering investments in cryptoassets, or lending or investments linked to cryptoassets, that promise\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.futuresandoptions.gr\/en\/fca-warns-consumers-of-the-risks-of-investments-advertising-high-returns-based-on-cryptoassets\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"FCA warns consumers of the risks of investments advertising high returns based on cryptoassets -\" \/>\n<meta property=\"og:description\" content=\"The FCA is aware that some firms are offering investments in cryptoassets, or lending or investments linked to cryptoassets, that promise\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.futuresandoptions.gr\/en\/fca-warns-consumers-of-the-risks-of-investments-advertising-high-returns-based-on-cryptoassets\/\" \/>\n<meta property=\"og:site_name\" content=\"Futures and Options\" \/>\n<meta property=\"article:published_time\" content=\"2021-01-11T16:24:05+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-01-11T16:24:08+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.futuresandoptions.gr\/en\/wp-content\/uploads\/2021\/01\/Cryptocurrencies.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"444\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"pnik\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"pnik\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.futuresandoptions.gr\/en\/fca-warns-consumers-of-the-risks-of-investments-advertising-high-returns-based-on-cryptoassets\/\",\"url\":\"https:\/\/www.futuresandoptions.gr\/en\/fca-warns-consumers-of-the-risks-of-investments-advertising-high-returns-based-on-cryptoassets\/\",\"name\":\"FCA warns consumers of the risks of investments advertising high returns based on cryptoassets -\",\"isPartOf\":{\"@id\":\"https:\/\/www.futuresandoptions.gr\/en\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.futuresandoptions.gr\/en\/fca-warns-consumers-of-the-risks-of-investments-advertising-high-returns-based-on-cryptoassets\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.futuresandoptions.gr\/en\/fca-warns-consumers-of-the-risks-of-investments-advertising-high-returns-based-on-cryptoassets\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.futuresandoptions.gr\/en\/wp-content\/uploads\/2021\/01\/Cryptocurrencies.jpeg\",\"datePublished\":\"2021-01-11T16:24:05+00:00\",\"dateModified\":\"2021-01-11T16:24:08+00:00\",\"author\":{\"@id\":\"https:\/\/www.futuresandoptions.gr\/en\/#\/schema\/person\/e724181c2b6dddb5e6c826e406faac26\"},\"description\":\"The FCA is aware that some firms are offering investments in cryptoassets, or lending or investments linked to cryptoassets, that promise\",\"breadcrumb\":{\"@id\":\"https:\/\/www.futuresandoptions.gr\/en\/fca-warns-consumers-of-the-risks-of-investments-advertising-high-returns-based-on-cryptoassets\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.futuresandoptions.gr\/en\/fca-warns-consumers-of-the-risks-of-investments-advertising-high-returns-based-on-cryptoassets\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.futuresandoptions.gr\/en\/fca-warns-consumers-of-the-risks-of-investments-advertising-high-returns-based-on-cryptoassets\/#primaryimage\",\"url\":\"https:\/\/www.futuresandoptions.gr\/en\/wp-content\/uploads\/2021\/01\/Cryptocurrencies.jpeg\",\"contentUrl\":\"https:\/\/www.futuresandoptions.gr\/en\/wp-content\/uploads\/2021\/01\/Cryptocurrencies.jpeg\",\"width\":1024,\"height\":444,\"caption\":\"Cryptocurrencies cryptoassets\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.futuresandoptions.gr\/en\/fca-warns-consumers-of-the-risks-of-investments-advertising-high-returns-based-on-cryptoassets\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.futuresandoptions.gr\/en\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"FCA warns consumers of the risks of investments advertising high returns based on cryptoassets\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.futuresandoptions.gr\/en\/#website\",\"url\":\"https:\/\/www.futuresandoptions.gr\/en\/\",\"name\":\"Futures and Options\",\"description\":\"Serving Intelligent Investors\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.futuresandoptions.gr\/en\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.futuresandoptions.gr\/en\/#\/schema\/person\/e724181c2b6dddb5e6c826e406faac26\",\"name\":\"pnik\",\"url\":\"https:\/\/www.futuresandoptions.gr\/en\/author\/pnik\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"FCA warns consumers of the risks of investments advertising high returns based on cryptoassets -","description":"The FCA is aware that some firms are offering investments in cryptoassets, or lending or investments linked to cryptoassets, that promise","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.futuresandoptions.gr\/en\/fca-warns-consumers-of-the-risks-of-investments-advertising-high-returns-based-on-cryptoassets\/","og_locale":"en_US","og_type":"article","og_title":"FCA warns consumers of the risks of investments advertising high returns based on cryptoassets -","og_description":"The FCA is aware that some firms are offering investments in cryptoassets, or lending or investments linked to cryptoassets, that promise","og_url":"https:\/\/www.futuresandoptions.gr\/en\/fca-warns-consumers-of-the-risks-of-investments-advertising-high-returns-based-on-cryptoassets\/","og_site_name":"Futures and Options","article_published_time":"2021-01-11T16:24:05+00:00","article_modified_time":"2021-01-11T16:24:08+00:00","og_image":[{"width":1024,"height":444,"url":"https:\/\/www.futuresandoptions.gr\/en\/wp-content\/uploads\/2021\/01\/Cryptocurrencies.jpeg","type":"image\/jpeg"}],"author":"pnik","twitter_card":"summary_large_image","twitter_misc":{"Written by":"pnik","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.futuresandoptions.gr\/en\/fca-warns-consumers-of-the-risks-of-investments-advertising-high-returns-based-on-cryptoassets\/","url":"https:\/\/www.futuresandoptions.gr\/en\/fca-warns-consumers-of-the-risks-of-investments-advertising-high-returns-based-on-cryptoassets\/","name":"FCA warns consumers of the risks of investments advertising high returns based on cryptoassets -","isPartOf":{"@id":"https:\/\/www.futuresandoptions.gr\/en\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.futuresandoptions.gr\/en\/fca-warns-consumers-of-the-risks-of-investments-advertising-high-returns-based-on-cryptoassets\/#primaryimage"},"image":{"@id":"https:\/\/www.futuresandoptions.gr\/en\/fca-warns-consumers-of-the-risks-of-investments-advertising-high-returns-based-on-cryptoassets\/#primaryimage"},"thumbnailUrl":"https:\/\/www.futuresandoptions.gr\/en\/wp-content\/uploads\/2021\/01\/Cryptocurrencies.jpeg","datePublished":"2021-01-11T16:24:05+00:00","dateModified":"2021-01-11T16:24:08+00:00","author":{"@id":"https:\/\/www.futuresandoptions.gr\/en\/#\/schema\/person\/e724181c2b6dddb5e6c826e406faac26"},"description":"The FCA is aware that some firms are offering investments in cryptoassets, or lending or investments linked to cryptoassets, that promise","breadcrumb":{"@id":"https:\/\/www.futuresandoptions.gr\/en\/fca-warns-consumers-of-the-risks-of-investments-advertising-high-returns-based-on-cryptoassets\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.futuresandoptions.gr\/en\/fca-warns-consumers-of-the-risks-of-investments-advertising-high-returns-based-on-cryptoassets\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.futuresandoptions.gr\/en\/fca-warns-consumers-of-the-risks-of-investments-advertising-high-returns-based-on-cryptoassets\/#primaryimage","url":"https:\/\/www.futuresandoptions.gr\/en\/wp-content\/uploads\/2021\/01\/Cryptocurrencies.jpeg","contentUrl":"https:\/\/www.futuresandoptions.gr\/en\/wp-content\/uploads\/2021\/01\/Cryptocurrencies.jpeg","width":1024,"height":444,"caption":"Cryptocurrencies cryptoassets"},{"@type":"BreadcrumbList","@id":"https:\/\/www.futuresandoptions.gr\/en\/fca-warns-consumers-of-the-risks-of-investments-advertising-high-returns-based-on-cryptoassets\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.futuresandoptions.gr\/en\/"},{"@type":"ListItem","position":2,"name":"FCA warns consumers of the risks of investments advertising high returns based on cryptoassets"}]},{"@type":"WebSite","@id":"https:\/\/www.futuresandoptions.gr\/en\/#website","url":"https:\/\/www.futuresandoptions.gr\/en\/","name":"Futures and Options","description":"Serving Intelligent Investors","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.futuresandoptions.gr\/en\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.futuresandoptions.gr\/en\/#\/schema\/person\/e724181c2b6dddb5e6c826e406faac26","name":"pnik","url":"https:\/\/www.futuresandoptions.gr\/en\/author\/pnik\/"}]}},"_links":{"self":[{"href":"https:\/\/www.futuresandoptions.gr\/en\/wp-json\/wp\/v2\/posts\/4756","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.futuresandoptions.gr\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.futuresandoptions.gr\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.futuresandoptions.gr\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.futuresandoptions.gr\/en\/wp-json\/wp\/v2\/comments?post=4756"}],"version-history":[{"count":1,"href":"https:\/\/www.futuresandoptions.gr\/en\/wp-json\/wp\/v2\/posts\/4756\/revisions"}],"predecessor-version":[{"id":4758,"href":"https:\/\/www.futuresandoptions.gr\/en\/wp-json\/wp\/v2\/posts\/4756\/revisions\/4758"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.futuresandoptions.gr\/en\/wp-json\/wp\/v2\/media\/4757"}],"wp:attachment":[{"href":"https:\/\/www.futuresandoptions.gr\/en\/wp-json\/wp\/v2\/media?parent=4756"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.futuresandoptions.gr\/en\/wp-json\/wp\/v2\/categories?post=4756"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.futuresandoptions.gr\/en\/wp-json\/wp\/v2\/tags?post=4756"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}