Investment in crypto assets can be high risk
Before you invest, you need to know the basics and understand the risks. Crypto activity is not regulated yet in the UK. This means there is no safety net if things go wrong. If you decide to invest in crypto, then you should be prepared to lose all your money.
Crypto related scams are common. These types of investments are accessible and available to all budgets. Criminals will use attractive adverts and fake celebrity endorsements. They do this to make people believe the investment is real. Remember, if something sounds too good to be true, then it probably is.
Crypto related scams vary. In some cases, criminals target victims by starting a romantic relationship. This approach could be an accidental message, or through official dating or social media channels. After a short time, they encourage you to invest into crypto investments. These are either fake or they have control of. Or they'll ask you to send money to them as a loan through a crypto exchange.
Protect yourself
- Do your research. If you're thinking about investing, take time to do your own research. Consider getting independent advice. Do this before sending any of your money.
- Be in control. Don't let anyone else set up a crypto wallet for you. No one should upload ID documents or manage investments on your behalf.
- Is it out of the blue? Avoid uninvited investment offers. Whether made through social media or over the phone.
- Not everything you see is real. Criminals use fake images and videos of celebrities that appear to endorse their products. These are known as deepfakes.
- Don't feel pressured. Don't fall for sales with limited timescales. And be wary of promises of high returns.
- Use FCA ScamSmart tool. This online tool helps you identify if your investment is a scam. Just answer four multiple choice questions. This will help you get a clear picture on the potential risks.
Limit on cryptocurrency payments
Where we can identify it, we'll limit the amount you can send to cryptocurrency exchanges in the UK. The limits apply to payments made through Internet Banking, payments set up over the phone, CHAPS, and open banking.
Your limit will be:
- £1,000 per transaction
- a total of £3,000 in any rolling 30-day period.
Here’s where you can learn more?