Members of the British Parliament indicated to the head FCA Nikhil Rati that buying bitcoin and other cryptocurrencies is not an investment, and appropriate wording should not be used in relation to them, reports The Times…
“The words ‘your investment’ equates this with an FTSE 100 company or a mutual fund,” – said Member of the House of Commons Harriet Baldwin at a meeting of the relevant committee.
She also noted that the list of unregistered cryptocurrency companies published by the regulator may contribute to attempts to launder money.
“It should be useful, but the list can also be used by those who just want to launder money,” added the parliamentarian and former JPMorgan employee.
Nikhil Rati promised the deputies “to think about what the wording should be.”
“I personally propose to simply say that anything related to cryptocurrency should not be eligible for compensation so that consumers know about it when they invest,” he added.
The possible exclusion of crypto-investors from the “Scheme of compensation payments to depositors of financial organizations” became known in early December.
Previously, the regulator has repeatedly warned consumers about the risks of investing in digital assets. Rati said in September that investors “must be prepared to lose all their money.”
Recall, according to the survey, every tenth British adult already owns digital assets, and 11% are considering buying them.
Other studies have shown that 45% of young people in the UK saw cryptocurrencies as their first investment, but the main motivation for investing was the rush around assets.