The Financial Conduct Authority (FCA) has introduced a package of measures designed to ensure those who buy crypto understand the risk of investing in the high risk sector and it has also categorised cryptoassets as restricted mass market investments (RMMI).

The RMMI categorisation reflects the FCA’s judgment of the risks cryptoassets pose to consumers. In particular, risks from sudden, large and unexpected losses due to volatility, firm failure, comingling of funds, cyber-attacks and financial crime.

‘Poor quality and misleading promotions, combined with pressure selling tactics, can exacerbate these risks,’ the FCA said, leading to consumers buying cryptoassets that are not aligned to their risk tolerance and do not meet their needs.

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