Cryptoasset investing? Be prepared to lose the lot, warns watchdog

SectorFinancial Markets
CountryMiddle east

Publishedduration50 minutes ago image copyrightGetty Images The Financial Conduct Authority (FCA) has issued a stark warning to investors in so-called cryptoassets. The financial watchdog said investors should be "prepared to lose all their money" should their investment's value collapse. Cryptoassets are not covered by investment regulation or protection. The warning is the latest in a string from the FCA and comes as Bitcoin, the best-known crypto currency, hits record highs. Some firms are drumming up new business by promising high returns for the investment. Last week, the price of Bitcoin, which has been in existence for 12 years, soared to over $40,000 - just short of £30,000. Its eye-catching swings in price have drawn in scores of investors. The FCA is concerned that while the highs are attractive, the inherent volatility of Bitcoin, and its rivals, mean there is a high risk of losses. It also means they can be difficult to understand and convert back to cash, and, unlike other forms of investment, such products have no associated tangible asset value. 'Very high risk' The FCA warns cryptoasset investors they will not have access to the Financial Services Compensation Scheme or the Financial Ombudsman Service as they would if they invested in standard products, such as shares. It said more...