FCA to launch campaign against crypto
09:53, 15 July 2021
The Financial Conduct Authority (FCA) will launch a marketing campaign warning about the risks of cryptocurrency investing as a part of its new proactive approach to the regulation of the UK’s financial sector.
The British financial watchdog outlined its plan for an £11m digital campaign targeting customers aged 18 to 30. The campaign will aim to inform consumers of risks associated with buying cryptocurrency assets.
“There is evidence too that, as with the GameStop episode, more people see investment as entertainment – behaving less rationally and more emotionally, egged on by anonymous and unaccountable social media influencers,” Nikhil Rathi, FCA’s chief executive, said.
“As we have repeatedly made clear: investors in crypto assets should be prepared to lose all their money,” he added.
The announcement came as part of the watchdog’s new business plan, where it committed to invest £120m in its data strategy over the next three years, and took a more hands-on supervisory stance towards financial regulation.
FCA to take a tougher approach on new businesses
New financial firms, especially those operating in high-risk areas such as crypto businesses applying for anti-money laundering registration, will face greater scrutiny, FCA said.
The body will set up a “regulatory nursery” – a form of early-warning system where it will monitor firms doing entirely new types of business and operating as fully regulated entities for the first time.
“The UK is open for business, but not to firms that do not meet, or wish to meet, regulatory expectations,” Rathi said.
Last month, the FCA banned Lithuanian fintech company UAB Finolita Unio from operating in the UK in light of concerns about its financial crime controls.
Read more: FCA says 2.3m UK adults now hold cryptos GameStop down despite new top execs and revenue growth
Related topics