The UK Financial Conduct Authority (FCA) has posted another warning about digital assets or cryptoassets. The FCA points to “recent social media posts” promoting digital assets including NFTs. The FCA tells consumers to be ready to lose all of their money when participating in a crypto-asset offering.
To quote the FCA’s statement:
“We have seen some recent social media posts regarding cryptoassets and non-fungible tokens (NFTs). We cannot comment on individual products. However, as we have said previously, the FCA 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.
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.”
While the FCA is pursuing its mission of investor protection and investor awareness, the UK government has publicly stated that it wants to be a hub for crypto-asset innovation. They just want it to be appropriately regulated and to have informed consumers.