Written by Jad Soubra
Following on from previous warnings, the FCA has recently issued a statement referring to recent social media posts regarding cryptoassets and non-fungible tokens and reminding consumers that the FCA has not been given regulatory oversight over direct investments in these assets. The FCA also highlighted the lack of consumer protection or consumer redress under the Financial Services Compensation Scheme offered to those who buy any of these assets and warned consumers that they “should be prepared to lose all the money [they] invest”.
Additionally, the FCA took the opportunity to remind cryptoasset firms engaged in the marketing of cryptoassets that they must comply with the guidelines set out by the Advertising Standards Authority (“ASA”) and state that cryptoassets are not regulated by the FCA. See our previous report on the ASA’s clamping down on cryptoasset advertising here.