Regulatory status
Cryptocurrencies are not regulated by the Financial Conduct Authority (FCA) or any other regulator. The Financial Ombudsman Service cannot be appealed to if you have a complaint, and the Financial Services Compensation Scheme does not apply to cryptocurrency. Some regulated services can interact with unregulated ones; an example being your GBP wallet which is an e-money account provided by Modulr.
The funds in your GBP wallet are safeguarded by Modulr. You can read more here: https://zumo.tech/europe-safeguarding-explanation-by-modulr/
Whilst your e-money account is regulated by the FCA (note, Electronic Money products are also not covered by the Financial Services Compensation Scheme), converting these funds into cryptocurrency removes the regulatory protection. The FCA has published information for consumers regarding the regulation and risks of cryptocurrencies: www.fca.org.uk/consumers/cryptoassets
Risk of capital
Cryptocurrencies are speculative, the prices can be volatile & your investment is at risk. There is the potential of complete loss of capital with no legal recourse. We give no assurance that any cryptocurrency will be viable, liquid, or solvent. Before purchasing any cryptocurrencies you should carefully consider your personal situation & what financial risks you are willing to take. Also be aware of any related tax allowance or implications, such as capital gains tax. Zumo does not provide any cryptocurrency advice or recommendations. In no way, shape, or form is any Zumo communication intended to imply that cryptocurrencies are low-risk or risk-free. For further details please see our Terms & Conditions.
