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 .
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