Investors should be wary of dealing with digital assets in the United Kingdom, according to David Lindberg, NatWest’s Chief Executive of Retail Banking. According to him, the sector is rife with con artists who set up phony cryptocurrency exchanges to dupe people into thinking they’re investing.
‘Fraud and Scams Are a Business’
David Lindberg, a top executive at the biggest British bank NatWest, has warned that the UK is not the greatest place to invest in crypto. According to him, the Kingdom is a “haven for con artists,” and investors should proceed with caution. He went on to say that he has “never seen a market worse” for frauds than the UK.
Lindberg warned that the problem might have serious ramifications for some people. He believes the British government, police, banks, and social media companies should all work together to battle fraudsters:
“Scams and fraud are a business. They’re smart and quick, and it’s horrible to see how they try to take people’s lives.”
Some bad actors construct websites where people can invest in Bitcoin, Ethereum, and other cryptocurrencies, but they are false, and the money goes to the fraudsters’ coffers, according to the top banker:
“They’re putting things together that seem like crypto exchanges but aren’t. They’re basically ruses, and our customers mistakenly believe they’ve invested in cryptocurrency. And all they’re doing is handing money over to a con artist.” David Lindberg is a well-known author.
The FCA also issued a warning on the dangers of cryptocurrency investing.
It’s worth noting that the Financial Conduct Authority (FCA) of the United Kingdom has announced intentions to start a $15 million digital marketing campaign to alert investors about the dangers of digital assets. The British regulator will focus on young people in the UK between the ages of 18 and 30.
Nikhil Rathi, the FCA’s Chief Executive, stated that young people regard investing as a form of entertainment, in which they act “less rationally and more emotionally, egged on by anonymous and unaccountable social media influencers.” He used the GameStop frenzy as an example, emphasizing the importance of individuals being better informed when investing their money in the market.
Furthermore, the FCA aims to impose stricter regulations on new crypto-related enterprises. The agency stated that it would establish a regulatory nursery system to monitor those businesses in their early phases to ensure that they adhere to the rules. Rathi went on to say that the UK would not accept any companies that refused to follow the new laws.