The Financial Conduct Authority (FCA) urged bitcoin and other cryptocurrency fans among investors to prepare for the possible loss of all money in case of unsuccessful investments, writes CNBC.
In its warning, the FCA refers to the practice, which some UK investment companies have recently resorted to. They offer new investment products linked to cryptocurrencies, as well as loans in them.
As a rule, such products are promised increased profitability, which is much higher than the possible profit for traditional investment products: deposits, shares of investment funds, exchange strategies.
The FCA message came out against the backdrop of a sharp decline in the cost of bitcoin and some other cryptocurrencies. As a result of the fall on January 11, the capitalization (aggregate market value) of all cryptocurrencies circulating in the world fell by $ 170 billion.
Bitcoin is trading at 34.7 thousand dollars, while in the first week of January its quotes reached 41 thousand. Over the past 12 months, the value of the most popular cryptocurrency has risen by more than 300 percent, prompting analysts to talk about unprecedented volatility.
The FCA also warned that some unscrupulous investment companies may use the unaccountability of classical government regulators and resort to fraudulent schemes.