As a company who spend all their time trying to help people to recover losses due to failures on the part of regulated companies, our simple answer is ‘No, they should not.’
We all know people who’ve become ‘Crypto Rich’, we understand why it’s an appealing asset and can potentially deliver returns far beyond what you would see in standard stocks and shares. However, this is an unregulated product and unregulated products carry huge risks.
The fact that the entire appeal of Crypto Currency is the anonymity behind it means there is absolutely no recourse in the event you lose money.
Asking the regulator to ease up on regulated funds and fund managers who want to utilise more of their funds for Crypto Investments (because they ‘think’ they can get better results) is asking the regulator to authorise high risk gambling with your money and furthermore by doing so, asking the Financial Services Compensation Scheme (FSCS) to potentially pick up the pieces and compensate you for your losses.
To put that into perspective, since 2019 the FSCS has paid out almost 2 BILLION POUNDS in compensation due to claims involving Pensions, Investments and Financial Advisers.
The reason that other countries regulators may be more comfortable easing up their controls is because most do not lucky enough to have a lifeboat fund like the FSCS to bail people out with cash compensation when things go wrong.
The bottom line is that funds, fund managers and UK retail investors can’t have it both ways. Either you step out of the protection of regulation and take the risk you could lose all your hard-earned savings or you work within the conspired restrictions of the regulator and accept that whilst you may not quadruple your money overnight, your investment risk is mitigated.
Sadly, in spite of all the regulators warnings, people are still getting caught out and whilst direct investments into Crypto are not covered, there are ways to recover your money if you have been subject to a scam, fraud or if you were introduced into a crypto Investment scheme by an regulated party such as a financial adviser or though your pension scheme.
We hope you haven’t been a victim of crypto scams or fraud however we are happy to investigate any claim to try and get you financial compensation or redress. We work on a no-win no-fee basis so just like the FCA mitigate your investment risk, your financial risk is mitigated here too (no claim, no fee).
Book a free consultation with one of our experts or alternatively you can sign up online here.
Read – FCA Maintains Stance on Crypto Investments for Retail Investors, Despite ETF Launches
