FCA announces the risks of investing in BTC, and institutional investors continue to believe in crypto assets

British regulator pointed to the risk of investing in cryptocurrencies

The UK Financial Conduct Authority warns of the risks of investing in crypto assets. The corresponding statement was published on the regulator’s website.

FCA drew attention to the fact that some companies are calling for investment in cryptocurrency projects and promising high returns. The British regulator warns that such investments are high-risk, and consumers “must be prepared to lose all their investments.”

“Firms offering these products should make sure they comply with all relevant regulatory requirements and are authorised by the FCA where this is required. Since 10 January 2021, all UK cryptoasset firms must be registered with the FCA under regulations to tackle money laundering. Operating without a registration is a criminal offence, ” FCA said in its statement.

According to the regulator, the key risks are associated with the lack of a system for protecting the rights of crypto investors, the volatility of such assets, difficulties in understanding the principle of operation of products, and high fees for cryptocurrency transactions.

The drop of BTC did not undermine the confidence of institutional investors in cryptocurrencies

The sharp decline in the bitcoin rate, which was recorded on January 11, did not become a reason for institutional investors to revise their attitude towards BTC. For example, the founder of SkyBridge Capital, Anthony Scaramucci, wrote on Twitter that he is “investing to the maximum”, especially amid the decline in the price of the first crypto coin.

Crypto enthusiast Nick Carter also wrote that he was not impressed by the recent decline in the value of BTC.

“I felt nothing at 40k and I continue to feel nothing. maybe I’ll feel something at 100k? Аfter watching bitcoin plunge 50% to 3k in 24h in an apparently “mature” market last year nothing fazes me anymore», ”Carter said.

On January 11, the price of bitcoin dropped to $ 31,000. After that, the rate began to rise again. The cost of bitcoin, according to Coinmarketcap, is $35,556.

PayPal records a multiple increase in the volume of transactions with the main cryptocurrency

PayPal has set a record for the volume of transactions with crypto assets on its own platform. As of January 11, transactions totaling $242 million were carried out on the site.

“That’s nearly double the previous record,” Nugget’s News founder Alex Saunders tweeted.

Cryptocurrency trading volume on PayPal was significantly higher than the previous record. On January 6, it reached $129 million. We would like to remind the reader that in mid-November 2020, PayPal launched the purchase and sale of BTC for US customers.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store