The UK Financial Conduct Authority (FCA) issued a warning against cryptoasset investments. The FCA has recognized recent social media posts regarding cryptoassets and non-fungible tokens (NFTs). While FCA cannot comment on individual products, the regulator warns that it has not been given regulatory oversight over direct investments in cryptoassets and NFTs. There are no consumer protections for those who buy any cryptoassets and NFTs, and they are not FSCS protected. As a result, if you buy cryptoassets you should be prepared to lose all the money you invest.
However, those marketing cryptoassets must stick to the guidelines set out by the Advertising Standards Authority (ASA) and state that cryptoassets are not regulated by the FCA. Marketing must also make clear that cryptoassets are not protected by financial compensation schemes. The ASA has investigated multiple adverts for cryptocurrencies which did not make it clear that the product was not regulated or protected in the UK.
Consumers can learn more about high-risk investments at https://www.fca.org.uk/investsmart.
