City watchdog warns against cryptoasset investments

Bitcoin’s value may have skyrocketed in the past year, but the UK’s top financial regulator warns that investing in the market is far from safe.

The Financial Conduct Authority (FCA) has issued a warning to alert people that while many firms may advertise about investment into cryptosassets, putting money into the sector is not certain to yield a great return.

“If consumers invest in these types of product, they should be prepared to lose all their money,” the City watchdog said in a statement.

The FCA urged consumers to ensure that they are aware of the risks of investing in cryptoassets like bitcoin and other cryoptocurrencies as it is a highly risky enterprise that does not always end up yielding a profit.

The regulator also reminded firms offering these products that they must comply with all relevant regulatory requirements and that they must be authorised by the FCA where this is required.

The news comes on the back of the bitcoin breaking another record last week, having been trading at a value of $35,000.

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