The UK Financial Conduct Authority (FCA) warned about the risks of trading crypto contracts for price differences (CFDs). A corresponding statement was made on the official FCA website.
The text says that cryptocurrency investors should pay more attention to CFD deals.
According to the FCA, these contracts allow speculating in prices for various assets, which in the case of cryptocurrencies increases the risk of frauds.
CFDs fall under the jurisdiction of the FCA. However, representatives of the Authority said that no measures of protection will be able to refund investors the funds invested in a failed transaction.
“Cryptocurrency CFDs can be conducted by firms that are established and authorized in the European Economic Area (EEA). If you trade with a firm in another jurisdiction, any individual complaints must be transferred to the appropriate authority. You should check what protection measures are applied in other EEA jurisdictions, before investing”, the authority said.
This is not the first time FCA calls for caution in cryptocurrency transactions. Earlier, Chris Woolard, the Director of Strategy and Competition, said that one should be especially attentive when working with cryptocurrency.
Discover more at ICO event Amsterdam!>>> https://icoevent.eu/