UK Wealth Managers Fear Cryptocurrency Steals Their Clients

Three investment agency executives have called on the Financial Conduct Authority (FCA) to hasten up plans to regulate the cryptocurrency industry to save unsuspecting investors from losing their money in the volatile market.

While the crypto industry remains largely unregulated and can attract investors with high promises, the same cannot be said of the regulated spaces they occupy.

As regulated bodies, there are a lot of tests we have to do before we can take on a client, said Wealthify CEO, Richard Theo in an interview reported by Finance Magnates.

“But that same client can go and buy bitcoin with no questions asked. There are far more risks involved when investing in Bitcoin and the FCA should get on to it fast.”

Similarly, James McManus who is the head of exchange-traded fund research at Nutmeg admits that the cryptocurrency markets get loads of media attention for substantial gains but pays little attention to larger loses. For him “now is the time for regulators to take a closer look at the selling process around cryptocurrencies.”

A global surge towards the new investment channel created by cryptocurrencies is without a doubt driving clients away from traditional investment options served by Wealthify and Co. with virtual currencies almost offering immediate gains to investors.

Founder and CEO of Scalable Capital, reckons this trend with digital currencies to be the same as ‘gambling’ not ‘investing’ and also admitted that news coverage for traditional financial assets are simply not ‘as sexy’ as it is for cryptos.

A UK regulation for the space or at least a discussion paper on various aspects, risks, and opportunities presented by cryptocurrencies is expected to be published this third quarter according to an April statement by the Financial Conduct Authority. The agency says it will work with the Treasury Committee and the Bank of England for this purpose.

For the time being though, it is looking ever likely that digital assets are eclipsing traditional investment channels like stocks and bonds and maybe the latter will rule the future of investment.