The UK’s Financial Conduct Authority (FCA) has once again warned investors about the risks of losing money when investing in cryptocurrencies. The financial watchdog is preparing to expand its influence in the industry and strengthen its anti-money laundering measures.
The newly appointed FCA Director of Digital Assets, Matthew Langstated in an interview that “billions of pounds” are being laundered through cryptocurrencies and that investors have already reported losing all of their savings.
Money laundering is a financial crime that occurs when individuals or organizations use illegal means to conceal the origin of illegally obtained funds.
Currently, the FCA is only responsible for conducting anti-money laundering and financial crime audits on cryptocurrency companies. However, its sphere of influence could expand in the coming years, with talks about transferring more powers to the FCA over cryptocurrency and stablecoin advertising.
“Be prepared to lose everything”
In an interview with Financial News, the new director of digital assets at the FCA said he was in talks “massive amounts of money laundered” in the current financial market.
He warned that crypto investors should be prepared to lose all their money as, in his words, not much can be done to get it back once the money is lost.
Long also warned of the need for investors to exercise caution and avoid risky investments without first doing proper research and understanding the risks involved.
“What we are seeing is huge amounts of money being laundered. Billions of pounds”said Matthew Long. “We also see many consumers who tell us that they have lost everything. [Eles perguntam] what can I do? The answer is nothing. Once the money runs out, it’s gone. That is why you will continue to hear our message: be prepared to lose all your money.”
In summary, Matthew Long’s statements emphasize the need to remain aware of the risks of the cryptocurrency market and exercise caution when investing.
Long, who joined the FCA in October from the National Crime Agency, also headed the UK’s Financial Intelligence Unit. He is building a cryptocurrency unit at the regulator and is looking for at least 15 employees.
He also called for global cooperation to avoid loopholes in jurisdictions as this is an international issue.
FCA
This is not the first time that the UK Financial Conduct Authority has warned against cryptocurrencies. In 2021, the FCA published an article telling investors to prepare to lose it all.
“As with all high-risk speculative investments, consumers should ensure they understand what they are investing in, the risks associated with the investment and any applicable legal protections.”, said the FCA.
To combat scams, the FCA required all cryptocurrency companies in England to register with the body. This was one of the details the FCA asked investors to watch out for, as unregistered companies are considered criminal.
Still in 2021, the Governor of the Central Bank of England (BoE), Andrew Baileyreinforced the warning, saying again that those who buy cryptocurrencies, such as Bitcoin, “must be willing to lose all the money invested.”
Source: Live Coins
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
