The Financial Conduct Authority (FCA) has noticed certain recent posts on social media about cryptoassets and non-fungible tokens (NFTs).
The FCA is unable to comment on specific items. However, as previously stated, the FCA does not have regulatory authority over direct investments in cryptoassets and NFTs. Buyers of cryptoassets and NFTs have no consumer safeguards, and they are not covered by the Financial Services Compensation Scheme (FSCS). As a result, if you invest in cryptoassets, you should expect to lose your entire investment.
Those promoting cryptoassets must follow the Advertising Standards Authority’s (ASA) rules and clearly declare that cryptoassets are not regulated by the FCA. Marketing must also make clear that cryptoassets are not protected by financial compensation schemes. The ASA has looked into a number of cryptocurrency advertisements that did not make it obvious that the product was not regulated or protected in the UK.
At www.fca.org.uk/investsmart, consumers may learn more about high-risk investments.
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