Last Revised Date : Dec 11, 2024

The Financial Conduct Authority (“FCA”), the UK regulator, expanded the scope of the financial promotions regime to enhance protections for UK users investing in cryptoassets.

The FCA considers this investment to be high risk due to the potential for losses. Cryptoasset companies like Pivotal Research Ltd (“Pivotal”) who market to UK consumers have to comply with the new rules starting 8 October 2023.

Users from the territory of UK are advised that protections provided by the UK regulatory system in connection with cryptoassets will not apply, as Pivotal is not authorised or regulated by the UK Financial Conduct Authority (FCA). It is your responsibility to ascertain whether you are permitted to use the services and products offered by Pivotal according to applicable laws or regulations.

By participating and accessing this website and the services and products available through it, you acknowledge that cryptoassets are high risk investments and that you deal in them at your own risk.

If you are a company or partnership, you acknowledge and confirm that your share capital or net assets are of at least £5m or a trust with total cash and investments of at least £10m, or that you have professional experience in matters relating to investments and your ordinary activities involve you in dealing in cryptoassets for the purpose of a business carried on by you.

What are the key risks?

1. You could lose all the money you invest
   • The cryptoasset market is largely unregulated. You may risk losing the money or any cryptoassets you purchase due to risks such as cyber-attacks, financial crime and firm failure.
   • The performance of most cryptoassets can be highly volatile. Their value may drop as quickly as it can rise. As such, you should be prepared to assume the risk of losing all the money you invest in cryptoassets.
2. Are you protected if something goes wrong?
   • This type of investment is not deemed a ‘specified investment’ under the UK regulatory regime. Accordingly, it is not recognised as an investment which is afforded protection under the Financial Services Compensation Scheme (‘FSCS’).
   • Similarly, protection from the Financial Ombudsman Service (‘FOS’) does not cover poor investment performance as Pivotal is not a FCA regulated firm.
3. What if you are not able to sell your investment?
   • The ability to sell a cryptoasset depends the supply and demand in the market at that time amongst various factors. There is no guarantee that investments in cryptoassets can be easily sold at any given time.
   • You may not be able to sell your cryptoassets at the time you want. Operational failings such as technology failure or outages, cyber-attacks and commingling of funds could cause unwanted delays.
4. Do your own research
   • Cryptoasset investments can be complex. You should do your own research before investing in cryptoassets to understand the risks associated with the investment.
5. Don’t put all your money in a single type of investment
   • This is risky especially in high-risk investments. Putting your money across different investments spreads the risks and less dependency is placed on any one to do well.

If you are interested in learning more about how to protect yourself, visit the FCA’s websites here. For further information about cryptoassets, visit the FCA’s website here.