The UK Financial Conduct Authority (FCA) urged UK citizens back in 2021 to refrain from investing in digital currencies.
The regulator then said the crypto market is subject to severe turbulence. Therefore, at any time a person can lose all invested funds.
This week, the head of the regulator, Nikhil Rathi, has reaffirmed the FCA's firm stance. During a speech at the Treasury Select Committee, he has stressed the state has no influence to ensure the full security of crypto investors.
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The UK will not be able to create an effective regulatory framework that levels the risks associated with turbulence and loss of funds invested in digital assets.
Currently, the parliament is discussing a bill on the regulation of the crypto market. If it comes into force in April, the FCA will become the main body responsible for overseeing the crypto sector in the country.