Who's protecting you? (Nobody)
Lesson 3 of 12 in our free Crypto, Hype & Finfluencers guide: a 5-minute money game with the key points below.
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Questions you'll answer
An app tells first-time crypto buyers to wait 24 hours before confirming. Why?
Quick facts
- Savings in a UK-authorised bank (up to the FSCS limit) → Usually protected. The FSCS protects deposits up to its limit if the bank fails.
- Crypto held on an exchange that collapses → Usually not protected. Generally no FSCS cover.
- Losses because crypto prices fell → Usually not protected. No one protects you from price falls.
- A complaint about a UK bank account → Usually protected. The Financial Ombudsman Service can look at it.
- Fact: “Crypto adverts in the UK must carry clear risk warnings.” — FCA rules require crypto promotions to be fair, clear and include risk warnings.
- Myth: “A crypto firm being 'registered' with the FCA means your money is protected.” — Registration is mostly about anti-money-laundering checks. It's not a safety net.
- Fact: “The FCA publishes warnings about unauthorised firms.” — Check the FCA Warning List before dealing with any firm.