I’m a small retail purchaser/holder of Bitcoin.
In June 2023 the FCA launched this Coverage Assertion https://www.fca.org.uk/publication/coverage/ps23-6.pdf
My query pertains to the ‘shopper categorisation necessities’.
Lately, on a platform I take advantage of to purchase crypto, I needed to reply some questions in order that they might categorise me (in line with the above-mentioned coverage it will seem) as both a ‘Excessive Internet Price Investor’ OR a ‘Restricted Investor’.
From what I perceive:
A Excessive Internet Price Investor earns £100,000 or extra per yr, or has web property value £250,000 or extra.
A Restricted Investor has restricted funding publicity, not investing greater than 10% in high-risk property up to now 12 months and never planning to make investments greater than 10% of their web property* into excessive threat property within the subsequent 12 months.
*Internet property don’t embrace major residence, pension (or any pension withdrawals) or any rights underneath qualifying contracts of insurance coverage. Excessive-risk investments embrace peer-to-peer loans, investment-based crowdfunding, models in a long-term asset fund, unlisted debt and fairness (resembling in firms not listed on an trade just like the London Inventory Trade), and cryptoassets.
And if I’m not in both of those 2 classes, then I can not purchase or commerce crypto property on the platform (however can nonetheless promote crypto for money, withdraw money, or ship crypto to an exterior pockets).
I’m definitely not a Excessive Internet value particular person.
So if haven’t any property apart from Bitcoin I could not purchase Bitcoin?
This appears relatively draconian. Who’re they to inform me what quantity of Bitcoin is appropriate? (Oh, however in case you are already wealthy, then its tremendous. Extra regulation to ensure ‘the wealthy get richer and the poor get poorer’. I am unable to assist however really feel that is extra to guard conventional funding markets than to guard me. I do know the dangers of Bitcoin and I’m ready to take them.)
Any recommendation or feedback on this may be appreciated.
