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Cryptocurrency investors may be excluded from the Financial Institutions Depositors Compensation Scheme (FSCS). The corresponding proposal is contained in the document FCAsubmitted for public consultation.
“The FSCS can focus on core products that are more likely to meet the needs of ordinary investors. […] Non-core instruments like crypto assets, unlisted securities or unregulated collective investment schemes, under certain circumstances, can be excluded from the protection of the FSCS, ”the document says.
In the event of bankruptcy of a UK-licensed financial institution, the FSCS program provides for payments of up to $ 112,700 for each affected client.
The scheme is funded by participating companies, so FCA is committed to keeping costs down. According to the document, over the past ten years, aggregate fees have tripled – from ~ $ 312 million to ~ $ 951 million per year.
The regulator also questions the right of wealthy or seasoned investors to seek compensation.
FCA intends to collect public opinion by March 4, 2022. The ministry stressed that following the consultations, many proposals may be rejected.
The management has repeatedly warned about the risks of investing in cryptocurrencies. In September, chief executive Nikhil Rati said that contributors to related products “must be prepared to lose all their money.”
Earlier, the department counted 2.3 million crypto investors in the country.
In September, the FCA warned of increased regulation of the crypto industry.
Recall that the Bank of England called the collapse of bitcoin “a plausible scenario.”
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