Bitcoin investors could lose everything according to UK regulator
Considering the present times, it’s only normal to wonder if crypto-currency is still relevant. What is sure is that this payment system enjoys a great deal of success in nations like the UK. Speaking of the UK, it’s not a stranger to crypto currency. As a matter of fact, there is no other place that bitcoin receives more support. Why? Maybe because bitcoin helped improve the British financial system. If you’re interested in investing in bitcoin, you might want to stop for a moment and carefully consider your decision. You could risk losing all your money.
The Financial Conduct Authority, namely the regulatory body in the UK, warns those who want to take part in coin offerings involving crypto currencies that doing so is foolish and at the same time risky. The FCA voiced their concerns, making tremendous efforts to inform people that using this kind of crypto-currency is not a secure thing. On the contrary, investors are exposing themselves to liability, possibly losing important sums of money. According to the FCA, investors looking forward to investing in unregulated means so as to raise money for a new crypto-currency venture could possibly experiment losses, ending up the victims of frauds.
Price fluctuations in digital currency are not out of the ordinary. The highest price that people were willing to pay for bitcoin at a given time was $4,000. The digital currency is popular in the US as it is in China. So, as we all understand – trading is like gambling. For those, who want to not just spend time with boring numbers and diagrams, we can recommend online casino type of pastime, but if you are not sure what to choose, then use Valley Games reviews and go for it. At least, it’s gonna be fun!
This considerable growth in the crypto-currency markets is what determined the Financial Conduct Authority to look into the matter. What they have found is indeed worrying. It seems that initial coin offerings are nothing but a scam and it can’t be considered the future of fundraising. What people need to comprehend is that crypto-currencies aren’t regulated financial tools, the consequence being that they don’t have guaranteed protection.
It’s tempting to think about all this as some kind of negative reaction coming from big institutions. The fact that bitcoin endangers the UK economy isn’t a secret anymore. While this financial instrument may have done good in the past, being, after all, decentralised. The good news is that the current limitations and the high transaction costs will prevent this from happening. As for financial institutions, they are right to be concerned because they aren’t able to handle radical financial changes.
So, will investors lose everything? Only time will tell. The only thing that can be said for sure right now is that they are taking on great risks due to the fact that in coin offerings are a mere speculation. The best course of action is to heed the warnings of the FCA. After all, they know what they are talking about. The Financial Conduct Authority will continue to observe the situation carefully on order to make sure that nothing bad happens.
The bottom line is that crypto-currency matters; it matters more than ever, whether it’s the UK, US, or China. If you genuinely want to become a player in the digital currency market, arm yourself with knowledge first.