The financial behavior authority (FCA), the British’s highest -level financial regulatory institution, clarified his approach to crypto currency investments. FCA CEO Nikhil Rathi said that young people have invested more in the crypto and stressed that they are not against innovation, but the risks should not be ignored.

Young investors are turning to the crypto money market

Rathi said at a meeting in Parliament on Tuesday, said millions of people under 35 years of age investing in digital assets in the UK, but most of them do not fully understand the risks of these investments.

“Crypto investments are very high and you have a possibility to lose all of your money, Rath said Rathi and argued that young people should be directed to safer investment instruments.

FCA aims to direct young investors to stocks, bonds and traditional financial vehicles that offer longer term earnings. In the new five -year strategy of the regulatory institution, it was emphasized that encouraging such investments is one of the primary objectives.

Increased interest in inheritance transfer and crypto currencies

FCA’s evaluations are becoming more important with the transfer of huge reserves to be experienced in the coming years. Approximately $ 84 trillion of leyturet is expected to be transferred from older generations to young generations.

According to a Charles Schwab survey in October, a large part of the millennium belt is used for crypto currencies. 62 %of the respondents stated that they plan to direct their investments to crypto assets as of 2025. In contrast, older generations give priority to American stocks and bond markets.

“We are not against innovation”

Although FCA is criticized for its strict regulations on the crypto currency sector, Rathi said they were not against innovation. Although some countries like the United States stretch the regulations of the sector, FCA continues to apply strict rules.

In 2023, FCA introduced more strict rules for the marketing methods of financial companies. Following these rules, large companies such as Paypal and Binance stopped some of their services in the UK. In addition, 86 %of applications that want to register as crypto money firms in the UK were rejected. Rathi announced that the main reason for this is that applications do not meet anti -money laundering standards.

“We had a task and we didn’t allow the negative events in some countries to take place here, Rath said Rathi said that even big companies did not get approval because they did not meet the necessary safety standards.

UK will improve crypto currency regulations in 2025

In December, FCA announced the regulation road map for crypto money markets. As of 2025, the regulator is expected to clarify the comprehensive regulatory framework for issues such as crypto stinging and market abuse. As we have quoted as Kriptokoin.com, FCA has been busy with solana -based breast coin scandals in recent months.

FCA’s moves are seen as part of the purpose of making Britain a safe and innovative center in global financial markets.