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’.
Just lately, on a platform I exploit to purchase crypto, I needed to reply some questions in order that they might categorise me (based on the above-mentioned coverage it could seem) as both a ‘Excessive Internet Value Investor’ OR a ‘Restricted Investor’.
From what I perceive:
A Excessive Internet Value Investor earns £100,000 or extra per 12 months, 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 prior to now 12 months and never planning to make investments greater than 10% of their web property* into excessive danger property within the subsequent 12 months.
*Internet property don’t embody major 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, models in a long-term asset fund, unlisted debt and fairness (similar to in firms not listed on an change just like the London Inventory Change), 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 actually not a Excessive Internet value particular person.
So if haven’t any property apart from Bitcoin I’ll not purchase Bitcoin?
This appears fairly draconian. Who’re they to inform me what quantity of Bitcoin is suitable? (Oh, however in case you are already wealthy, then its wonderful. Extra regulation to verify ‘the wealthy get richer and the poor get poorer’. I can not 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.