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 by the FCA. This means there is no safety net if things go wrong, and you won't get any protection from the Financial Services Compensation Scheme. 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.
- Are you thinking about making an investment? If so, take time to do your own research. Consider getting independent advice. Do this before sending any of your money.
- Don't let anyone else set up a crypto wallet for you. No one should upload ID documents or manage investments on your behalf.
- Avoid uninvited investment offers. Whether made through social media or over the phone.
- Remember, a celebrity endorsement doesn't mean it's real.
- Don't fall for sales with limited timescales. And be wary of promises of high returns.
- Use FCA ScamSmart to check it out. It's an online tool to help you identify if your investment is a scam. Just answer 4 multiple choice questions. This will help you get a clear picture on the potential risks.
Limit on cryptocurrency payments
From 15th November 2022 where we identify payments to cryptocurrency exchanges using Internet Banking, we'll limit the amount that you can send. These limits are applied per account.
You'll be restricted to:
- a £1,000 limit per transaction,
- a total limit of £3,000 in any rolling 30-day period.
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