Too many young people invests in crypto, says FCA – “We are not anti-innovations” – DL News

Too many young people invests in a cripto.

It is according to Nikhil Rathi, the executive director of the organic behavior in the UK, which became famous during a meeting with legislators on Tuesday.

The head of the leading financial markets VATCHDOG said that the evaluations of “several million” people in the UK under the age of 35 have invested in digital property without understanding risk.

“We know it’s potentially very high risk and you could lose all your money,” Rathi said.

FCA would rather young people invest in capital, bonds or other traditional markets.

On Tuesday, the regulator said to help consumers invest more in capital or marketback market, to achieve greater long-term returns was one of their four key goals in their new five-year-old strategy Financial times reported.

Comments come as $ 84 Billion Transmission of Wealth From the elderly generations, it is expected to be a huge gress for crypto.

Millennium boom

Most Millennium Investors bet their money on the CRYPTO, according to the October Research of the Investment Bank Charles Schwab.

When asked where they would invest their money in 2025. years, 62% of Millennial surveyed, said they would invest in cryptocurrency. American actions and fixed income funds were second and third, respectively.

Older generations are more likely to invest in American actions first before investing in funds traded in CRIPTO, in accordance with the research.

‘Not anti-innovation’

FCA gained a reputation as crypto treated too strictly, especially compared to other regulators in jurisdictions like the US Where laws around the industry become more relaxed.

In 2023. The FCA has expanded its rules on how financial firms allow them to be located. Strict rules saw companies like Paypal and Binance suspend Their UK services.

Also used the regulator also rejected most Companies that have signed up to register as a crypto firm in the UK.

“We are not anti-innovation,” Rathi said. “We absolutely want to be sure that the United Kingdom is an attractive place.”

However, 86% of applications continued, because they did not meet the money laundering standards that the UK parliament gave FCA.

It meant that it had to return “approval of some of the biggest companies in the world”, which deserved FCA lots of flak.

“We had a job to do, and some of these things went badly somewhere else, and we didn’t let that happen here,” Rathi said.

In December FCA let his own molder For the CRIPTO regulation, which calls the Agency to draw its full policy statements, including approaches for crypto commitment and market abuse, 2025. years.

Andrew Flanagan is a Market correspondent for DL ​​News. Eric Johansson is the news editor for DL ​​News. You have the top? Reach aflanagan@dlnews.com and eric@dlnews.com.