Notice for UK users

Due to the potential for losses, the Financial Conduct Authority (FCA) considers cryptoasset investment to be high risk.

What are the key risks?

1. You could lose all the money you invest

1.1 The performance of most cryptoassets can be highly volatile, with their value likely to go down, as well as up. You should be prepared to lose all the money you invest in cryptoassets.

1.2 The cryptoasset market is largely unregulated. There is a risk of losing money or any cryptoassets you purchase due to risks such as cyber-attacks, financial crime and firm failure.

2. You should not expect to be protected if something goes wrong

2.1 The Financial Services Compensation Scheme (FSCS) doesn’t protect this type of investment because it’s not a ‘specified investment’ under UK regulation–  cryptoasset investment isn’t recognised as the sort of investment that the FSCS can protect. Learn more with the FSCS investment protection checker here.

2.2 [The Financial Ombudsman Service (FOS) will not be able to consider complaints related to this firm] or [Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. However, if you have a complaint against an FCA-regulated firm, FOS might be able to consider it.] Additional details on FOS protection can be found here.

3. You may not be able to sell your investment when you want to

3.1 There is no guarantee that investments in cryptoassets can be easily sold at any given time. The ability to sell a cryptoasset depends on various factors, including the supply and demand in the market at that time.

3.2 Operational failings such as technology outages, cyber-attacks and comingling of funds could cause unwanted delay and you may be unable to sell your cryptoassets at the time you want.

4.  Complexity of cryptoasset investments:

4.1 Investments in cryptoassets can be complex, making it difficult to understand the risks associated with the investment.

4.2 You should do your own research before investing.

5. Diversification

5.1 Also known as “don’t put all your eggs in one basket”, diversification means spreading your money across various asset classes rather than putting it all into a single type of investment. Spreading your money across different investments makes you less dependent on anyone to do well.

5.2 A general guideline is not to invest more than 10% of your money in high-risk investments – click here to learn more.

If you want to learn more about safeguarding your investments, visit the FCA’s website here. For further information about cryptoassets, visit the FCA’s website here.