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Crypto investors face exclusion from future compensation scheme

Bitcoin and other cryptoassets could be excluded from updates to the UK’s FSCS

By Emily Nicolle
Updates to the FSCS could explicitly exclude cryptocurrencies like bitcoin, leaving consumers still at risk of losing all their money
Updates to the FSCS could explicitly exclude cryptocurrencies like bitcoin, leaving consumers still at risk of losing all their money Photo: Jakub Porzycki/Getty Images

Individuals and firms trading in cryptocurrencies may be excluded from a key UK scheme designed to protect their investments, according to a new proposal from the regulator.

Plans to expand the Financial Services Compensation Scheme could leave out “certain particularly high-risk or alternative investments”, the Financial Conduct Authority said in a 6 December discussion paper.

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