UK Financial Authority Warns Investors Against Cryptocurrency Derivatives

British regulator, the Financial Conduct Authority, has issued a warning to investors against venturing into cryptocurrency contracts for differences (CFDs). The agency claimed that digital currency-based CFDs are considered to be high-risk investments.

In a statement posted on its website in mid-November 2017, the FCA issued its warning to investors against investing in crypto-based CFDs due to several risks that they could face. Among the risks are price volatility, leverage, charges and funding costs and price transparency.

The agency further added that investors should carefully examine whether venturing into virtual currency CFDs is right for them. It claimed that the legal safeguards currently in place cannot protect them and will not compensate them for any losses that they could incur from trading.

“Cryptocurrency CFDs are an extremely high-risk, speculative investment. You should be aware of the risks involved and fully consider whether investing in cryptocurrency CFDs is…

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