Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Help and Support

What Risks and Regulations Should I Be Aware Of?

Don't invest unless you're prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong. Take 2 minutes to learn more about the risk involved.
[Approved by Archax 16/05/2025]

Important: We are aware of an issue where iOS users may be unable to view the individual crypto assets in their portfolio. This is a known display issue only — client assets remain secure and unaffected. A resolution has been submitted to the App Store and will be deployed once approved.
Please check for updates and install the latest version of the app to resolve the issue once available.

What are the Common Risks Involved in Cryptocurrency?

Market Risks:

  • Volatility: The performance of most crypto assets can be highly volatile, with their value dropping as quickly as it can rise.
  • Liquidity Risk: There is no guarantee that investments in crypto assets can be easily sold at any given time.

Operational Risks:

  • Security Risk: Vulnerability to cyber-attacks, financial crime and firm failure.
  • Regulatory Risk: Evolving regulations may impact asset legality or availability.
  • No Regulatory Protection: The Financial Services Compensation Scheme (FSCS) doesn't protect this type of investment. 



What Do I Need to Know About Cryptocurrency Regulations?


What Role Does the FCA Play?

The Financial Conduct Authority (FCA) oversees cryptocurrency compliance, client protection, and transparency in the UK. It's important to understand that the Financial Services Compensation Scheme (FSCS) doesn't protect cryptocurrency investments because they aren't considered "specified investments" under UK regulations. While you can complain to the Financial Ombudsman Service (FOS) about FCA-regulated firms, they won't be able to consider poor investment performance.


What Is the Travel Rule and How Will It Affect Me?

The Travel Rule is part of global Anti-Money Laundering efforts. It requires cryptocurrency service providers to share information about senders and recipients for transactions above certain amounts. While not fully enforced in the UK yet, the FCA is preparing to align with Financial Action Task Force standards. This means:

  • You may need to provide more details for large or international cryptocurrency transfers
  • Trading platforms will notify you about any compliance changes to keep you informed





If you are interested in learning more about how to protect yourself, visit the FCA's website.


Understanding the regulatory framework, recognizing specific risks, and implementing responsible trading practices are essential for navigating this complex market. 


As with all high-risk investments, careful consideration of your financial circumstances and investment objectives should precede any cryptocurrency trading activities.





Are you finding this article useful?

Positive FeedbackNegative Feedback

Related articles

Exploring the Most Popular Cryptocurrencies Offered by IG

How Does IG's Crypto Offering Compare to Specialised Exchanges?

Making Your First Cryptocurrency Purchase with IG