The head of the UK’s Financial Conduct Authority (FCA) has stated that “too many young people invest in crypto.” Nikhil Rathi expressed his concerns about the British crypto market during a meeting with lawmakers on March 25. Rathi emphasized that the FCA estimated that “several million” people under 35 in the UK have invested in cryptocurrencies, often without fully grasping the risks involved.

Stop buying crypto! Buy more stocks and bonds…

The head of the UK’s Financial Conduct Authority warned that young people are investing in crypto instead of traditional assets (stocks or bonds) as these investments carry a significant risk of losses.

Rathi reiterated the FCA’s preference for young individuals to invest in stocks and bonds, claiming it would lead to better long-term returns. He further stated that their five-year strategy focuses on steering UK consumers toward equity and bond investments.

Additionally, a recent Charlie Schwab survey highlighted that 62% of millennials intend to invest in cryptocurrencies by 2025, contrasting their interest with older generations favoring stocks.

UK’s FCA Stance on Crypto

Rathi’s statements sparked backlash, particularly from retail investors who feel constrained from accessing high-growth assets in favor of underperforming traditional options. Digital asset investments have far outperformed traditional assets since 2020, leading to more young traders favoring crypto.

Someone HAS to call out @TheFCA!

On March 25, FCA Executive Nikhil Rathi cautioned that ‘too many young British people invest in crypto’, recommending instead the purchase of struggling UK assets.