- Binance and Coinbase commence U.K. operations under new crypto regulations.
- U.K. FCA emphasizes the high-risk nature of crypto investments.
- FCA cautions against potential losses and lack of protection.
The largest crypto exchange, Binance, alongside the leading US-based exchange, Coinbase, now operates a trading platform for U.K. residents under the new regulations in the country.
CryptoBusy, a renowned Bitcoin analyst in the crypto community, first drew the attention of crypto enthusiasts to the development in a recent post on X (formerly Twitter). He highlighted that while Binance and Coinbase offer exchange services to U.K. customers, the Financial Conduct Authority (FCA) categorizes cryptocurrency investments as high-risk due to their potential for substantial losses.
Additionally, the Bitcoin analyst highlighted the risks the FCA believes are associated with crypto investments. These include the possibility of losing all invested funds, the absence of regulatory protections in case of unforeseen issues, potential difficulties in selling investments when desired, and the inherent complexity of crypto asset investments.
Additionally, the FCA advises investors not to invest all their assets in a single avenue but to diversify their investments.
Meanwhile, in the statement announcing Binance’s offering for the U.K., the exchange disclaimed that crypto investments are not covered by the Financial Ombudsman Service or subject to protection under the Financial Services Compensation Scheme.
Furthermore, Binance mentioned that some exchange services are not open to retail investors in the United Kingdom. “Our commitment to regulatory compliance means that certain offerings are reserved exclusively for UK Professional Clients,” the statement read.
Notably, some of the highlighted offerings include spot trading of over 350 cryptocurrencies and buying and selling non-fungible tokens. Similarly, Coinbase noted that U.K.-based investors should not commit to cryptocurrencies unless willing to lose the funds.
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