Bulletin
Investor Alert

New York Markets Open in:

Key Words Archives | Email alerts

Jan. 11, 2021, 3:29 p.m. EST

‘Prepare to lose all your money’ — regulator’s blunt warning on bitcoin and other cryptocurrencies

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Bitcoin USD (BTCUSD)
  • X
    Ethereum USD (ETHUSD)

or Cancel Already have a watchlist? Log In

By Steve Goldstein

The U.K.’s financial regulator on Monday issued a very blunt warning about the rise of bitcoin and other cryptocurrencies.

The warning was prompted by firms “offering investments in cryptoassets, or lending or investments linked to cryptoassets, that promise high returns,” the Financial Conduct Authority said.

The regulator said it had five concerns: Consumer protection, price volatility, product complexity, charges and fees, and marketing materials. “There is no guarantee that cryptoassets can be converted back into cash. Converting a cryptoasset back to cash depends on demand and supply existing in the market,” the regulator said.

The market cap of bitcoin and other cryptocurrencies topped $1 trillion last week, according to CoinDesk. Bitcoin /zigman2/quotes/31322028/realtime BTCUSD -0.51% over the last 12 months has gained 330%.

Bitcoin, ethereum /zigman2/quotes/108573964/realtime ETHUSD +5.90% and other cryptocurrencies tumbled on Monday, with double-digit percentage declines .

/zigman2/quotes/31322028/realtime
US : CoinDesk
54,749.26
-280.17 -0.51%
Volume: 0.00
April 22, 2021 7:50a
loading...
/zigman2/quotes/108573964/realtime
US : Kraken
2,546.99
+141.99 +5.90%
Volume: 467.11M
April 22, 2021 7:50a
loading...

This Story has 0 Comments
Be the first to comment
More News In
Markets

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.