Should’ve Attended Eton Youth: UK Financial Regulator Targets Young British Traders
The leader of the UK’s Financial Conduct Authority (FCA) has stated that “there are too many young people investing in crypto.” Nikhil Rathi, the FCA’s chief executive, expressed these critical views about the UK trading market during a discussion with lawmakers on Tuesday (March 25).
In the same discussion, Rathi noted that the FCA estimated “several million” individuals in the UK under 35 years old have engaged in digital asset investments without a comprehensive understanding of the associated risks.
Cease crypto investments! Shift focus to stocks and bonds…
The head of the UK’s Financial Conduct Authority – alarmed by the trend of young people putting their money into crypto instead of conventional assets (stocks or bonds).
He cautioned that crypto investments pose a significant risk of “losing all your money”… pic.twitter.com/mtAqw8nZAF
— Solomon – M – Prestige (@SolomomPrestige) March 26, 2025
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“It’s potentially extremely high-risk, and there’s a chance you could lose all your capital,” Rathi remarked in Tuesday’s meeting. He mentioned that the FCA would rather see young individuals invest in equities, bonds, or other more conventional markets.
The regulatory body stated that its objective of boosting UK consumers investment in equity or bond markets for better long-term returns was one of the four main goals of its new five-year strategy.
Indeed, the FCA is aiming to funnel retail investors into supporting transient British economic power while accredited investors enjoy unchecked access to crypto derivatives.
Somebody MUST challenge @TheFCA #UKCrypto Crusade. Last Tuesday, FCA Exec Nikhil Rathi stated ‘too many young British individuals invest in crypto’, and suggested supporting the STRUGGLING UK economy by purchasing loss-making bonds and underperforming UK stocks.
UNACCREDITED INVESTORS SAY NO. pic.twitter.com/pdqaVKW75T
— Luumuno |
99Bitcoin’s Lead Editor, Sam Cooling, highlights the nerve of this position from the FCA, which claims to ‘protect’ investors while steering them away from high-growth options toward lagging British stocks and bonds.
Indeed, a detailed analysis of Cooling’s assertions reveals that since 2020, assets suggested by the FCA, including the FTSE100 (the top 100 firms on the London Stock Exchange), recorded only a +13.12% increase, whereas UK bonds significantly underperformed, resulting in -31% returns (an actual loss for investors).
In contrast, Bitcoin’s USD value skyrocketed by +1,058% during the same timeframe. Should we really be surprised that young British traders are dismissing the institutional mirage and opting for strategies that yield profits? We think not.
These remarks arise amidst an ongoing $84 trillion wealth transfer from older generations to the younger population. It’s anticipated that as this wealth moves down to those under 35, the crypto market will see significant benefits since the younger demographic generally prefers investing in digital assets.
An October survey conducted by investment bank Charles Schwab confirms this trend. When asked about their investment preferences for 2025, 62% of millennials replied that they would allocate their funds to cryptocurrencies. American stocks and fixed-income assets secured the second and third spots, respectively.
Older individuals in the same survey expressed a preference for investing initially in American stocks before turning to crypto exchange-traded funds.
The UK Dinosaur Maintains an Anti-Innovation Position: Rathi and the FCA Claim Otherwise – But Are They Being Honest?
UK regulators are chasing away BTC enterprises while other countries capitalize on this chance. The FCA’s comprehensive cryptoasset policy is stifling innovation, hindering growth, pushing companies abroad, and rendering the UK increasingly unwelcoming for Bitcoin enterprises.… pic.twitter.com/8jVxVxnIn2
— Decentra Suze (@DecentraSuze) March 18, 2025
The FCA has garnered a reputation for imposing stringent regulations on crypto, particularly in comparison to regulators in regions like the US and UAE, where rules are becoming more lenient.
Two years prior, in 2023, the FCA broadened its regulations regarding how financial companies can promote themselves. These stringent regulations led companies like PayPal and Binance to halt their services in the UK, stripping away crucial platforms for UK investors.
The authority also continues to deny the majority of businesses seeking registration as crypto firms in the UK, causing them to migrate to more lenient jurisdictions such as the United Arab Emirates.
“We are not against innovation,” Rathi emphasized. “We unequivocally want to ensure the UK remains an appealing destination.” He defended the high rate of application rejections for UK businesses seeking to establish themselves as crypto firms.
The FCA chief executive said that 86% of applications were rejected because they failed to comply with anti-money laundering standards set by the UK parliament for the FCA. However, it’s important to point out that, as is typical with the FCA, the approved license-holders are not small startups but rather entities tied to the revolving door.
This resulted in holding back “approvals of some of the world’s largest firms,” leading to significant backlash against the FCA. “We had responsibilities, and some issues escalated elsewhere, and we ensured that did not happen here,” Rathi commented.
In December, the FCA published an updated roadmap for crypto compliance. It lays out the agency’s intent to disclose its complete policy statements, including approaches to crypto staking and crypto market manipulation, in 2025.
Whether the UK will take steps to alleviate its stringent and often unbalanced crypto regulations to avoid being overshadowed by Dubai and the USA remains uncertain.
For now, the young individuals trying to enhance their wealth through cryptocurrency in the UK continue to be largely excluded – relying on VPN access and Palau Digital IDs as the foundation of their grassroots efforts to maintain crypto market access.
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The article Should’ve Gone to Eton Kid: UK Financial Regulator Takes Aim at Young British Traders appeared first on 99Bitcoins.
