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’.
Not too long ago, on a platform I exploit to purchase crypto, I needed to reply some questions in order that they may categorise me (based on the above-mentioned coverage it will seem) as both a ‘Excessive Web Price Investor’ OR a ‘Restricted Investor’.
From what I perceive:
A Excessive Web Price Investor earns £100,000 or extra per yr, or has web belongings value £250,000 or extra.
A Restricted Investor has restricted funding publicity, not investing greater than 10% in high-risk belongings up to now 12 months and never planning to make investments greater than 10% of their web belongings* into excessive threat belongings within the subsequent 12 months.
*Web belongings don’t embody main residence, pension (or any pension withdrawals) or any rights beneath qualifying contracts of insurance coverage. Excessive-risk investments embody peer-to-peer loans, investment-based crowdfunding, items in a long-term asset fund, unlisted debt and fairness (equivalent to in firms not listed on an alternate just like the London Inventory Trade), and cryptoassets.
And if I’m not in both of those 2 classes, then I can’t purchase or commerce crypto belongings 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 Web value particular person.
So if don’t have any belongings apart from Bitcoin I could now not purchase Bitcoin?
This appears relatively draconian. Who’re they to inform me what quantity of Bitcoin is appropriate? (Oh, however if you’re 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 might be appreciated.
