Khalaf argued that greater financial regulation of crypto might encourage more established financial services firms to enter the market, opening it up to new consumers – though he said there are still good reasons why they may continue to keep a safe distance.
“In any case, the fact that 10 per cent of UK adults own crypto demonstrates this is already a mass market. Better for it to be safe than sorry," he said.
Myron Jobson, senior personal finance analyst at Interactive Investor said the challenge for the regulator is to devise a robust customer knowledge framework so that all the players involved knows what good looks like.
“Armed with knowledge and a discerning eye, investors can better avoid the pitfalls of the crypto landscape.”
Rio Stedford, financial planning expert at Quilter, said cryptoassets are “not a good investment strategy”.
“Investing is not about making quick returns, but about getting rich slowly and crafting an investment strategy which takes into account how much you can realistically set aside each month to invest, your capacity for loss and appetite to risk given your investment objectives,” she said.
“Diversified, multi-asset portfolios will better guard you against violent swings in asset prices and ensure your long-term objectives are achievable, [which is] something cryptoassets are currently ill-equipped to provide.”
sally.hickey@ft.com
What do you think about the issues raised by this story? Email us on ftadviser.newsdesk@ft.com to let us know
