Investors Should Not Receive Compensation for Crypto Losses, Says FCA’s CEO
Nikhil Rathi – CEO of UKs top financial regulator FCA – proposed that the British government should not pay compensations to individuals investing in cryptocurrencies in case of a loss. Digital assets have been employed in criminal activities, and investors dealing with them “must be ready to lose all of their money,” the top exec opined. The UK Needs to ‘Draw Some Pretty Clear Lines’ The Chief Executive Officer of the FCA – Nikhil Rathi – addressed his proposal to the Treasury Committee when asked about his view on the cryptocurrency industry in the United Kingdom. He said bitcoin and the altcoins had been a “vector for serious organized crime” and money laundering, and investors must be aware of those risks before entering the market. As such, the Financial Services Compensation Scheme (FSCS) should no longer reimburse those who have lost sums when dealing with the asset class: “I would suggest we simply say that anything crypto-related should not be entitled to compensation, that consumers are clear about that when they are investing.” The FSCS is the British statutory deposit insurance and investors compensation scheme for customers of authorized financial services firms. This means locals are eligible to receive some reimbursements if they have become victims