Cryptocurrencies are not regulated in the U.K., meaning people are not protected by consumer protection laws if their funds are lost for any reason — for example in a hack on an exchange.
But, according to research published by the FCA, most young people investing in crypto aren’t aware of this, with 69% incorrectly believing it is regulated.
Three quarters of younger investors are driven by “competition” with friends and family when it comes to investing in a cryptocurrency or other high-risk products such as foreign exchange or crowdfunding, a survey from the financial services watchdog found.