Britain’s financial watchdog is warning about the dangers of investing in cryptocurrency as Bitcoin’s price crashed.
Britain’s Financial Conduct Authority, or FAC, says investing in cryptocurrencies is very high risk—and investors should be prepared to lose all their money.
The message comes as Bitcoin—the biggest cryptocurrency—reached its highest amount ever at nearly 42,000 dollars last week.
At one point from Sunday to Monday, Bitcoin dropped over 20 percent of its value.
UK investors currently do have some small protections in place. Companies that offer investment in cryptocurrencies are subject to regulation.
The FCA statement reminds that new rules come into place this week. They require that crypto companies register with the watchdog and carry out money laundering audits.
The UK’s move comes as the U.S. Treasury says it plans to introduce new rules to stamp out illegal cryptocurreny transactions. It would also require custodians and exchanges to provide details on crypto held outside of financial institutions.
