Risk warnings for UK consumers
The below warnings contain important information regarding cryptoasset investments. Please read the below information carefully before purchasing cryptoassets. In order to purchase cryptocurrency through unramp.com website, it is necessary that you confirm that you have read and understood the below information.
Cryptoasset investments carry significant risk and are largely unregulated in the UK. Therefore, you are generally not protected by organizations such as the UK Financial Conduct Authority (FCA) or the Financia Services Compensation Scheme (FSCS). Please read the following information carefully before making any investment decision.
Risk Warning:
1. Capital at Risk: The value of cryptoassets is highly volatile, and you may lose all the money you invest. The price of cryptoassets can rise and fall significantly in a short period, and past performance is not indicative of future results.
2. No Regulatory Protection: Cryptoassets are largely not regulated by the FCA, and therefore you will not be protected by the Financial Ombudsman Service or the FSCS if things go wrong.
3. Market Volatility: The cryptoasset market operates globally and continuously, leading to high volatility. Changes in market conditions, global events, and regulatory developments can have immediate and unpredictable effects on cryptoasset values.
4. Suitability: Cryptoassets are generally suitable only for individuals who are experienced in high-risk investments and can afford to lose their investment in full. We strongly recommend that you carefully assess whether investing in cryptoassets aligns with your risk tolerance and financial objectives.
5. Hard to spend: you can’t spend cryptoassets like cash as few retailers accept cryptocurrency such as Bitcoin as payment. Therefore, you have to sell them on an exchange, with their associated security issues. If you’re storing your cryptoassets on a password-protected personal hard drive or memory stick and you lose or forget the password, you may well have lost access to your investment altogether.
6. Tax Implications: Gains or losses from cryptoasset investments may have tax implications. Please consult a tax advisor to understand your obligations.
Important Disclosures:
1. No Guaranteed Returns: We do not guarantee any specific return or profit from cryptoasset investments. Claims of guaranteed returns are misleading and should be avoided.
2. Lack of Consumer Protections: Since cryptoassets are largely not regulated in the UK, you are not afforded the same protections as with traditional financial products. This includes no access to redress mechanisms in the event of fraud or mismanagement.
3. Risk of Scams and Fraud: The cryptoasset industry is susceptible to scams, phishing attacks, and other forms of fraud. Exercise caution when receiving unsolicited offers or advice related to cryptoassets.
Assessing Your Investment:
1. Conduct Thorough Research: Ensure that you fully understand the specific cryptoasset and the associated risks before investing. Consider consulting a financial advisor if you are uncertain.
2. Risk Assessment: Only invest money that you are prepared to lose entirely. The potential rewards of cryptoassets come with high levels of risk that are not suitable for all investors.
3. Due Diligence: Make sure you conduct independent due diligence on the provider and the cryptoasset being offered. Verify any claims made about the cryptoasset’s performance, utility, or value.
Additional Resources and Support:
Financial Conduct Authority (FCA): The FCA provides consumer warnings and resources about cryptoasset risks. Visit the FCA website for more information.
Independent Financial Advice: Consider seeking advice from a qualified financial advisor who understands cryptoassets and can help you make an informed decision.
By proceeding with cryptoassets purchase, you acknowledge that:
- You fully understand the risks associated with cryptoasset investments.
- You have the financial means to bear the loss of your entire investment.
- You accept that cryptoasset investments are not covered by regulatory protections in the UK.
Disclaimer: This financial promotion has been approved by [Approving FCA-Authorized Organization], an FCA-authorized firm (Reference Number). The information provided here is for informational purposes only and does not constitute investment advice or a recommendation to invest in cryptoassets. Please consider your individual circumstances and the associated risks before investing.
This disclosure is required under the UK Financial Promotion regime for cryptoasset investments. If you have any questions, please contact us at contact@support.unramp.com