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Risk Warning - Notice to UK Users  

Estimated reading time: 2 mins

Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.

What are the key risks?

1.You could lose all the money you invest

The performance of most cryptoassets can be highly volatile, with their value dropping as quickly as it can rise. You should be prepared to lose all the money you invest in crypto assets.

The crypto asset market is largely unregulated. There is a risk of losing money or any cryptoassets you purchase due to risks such as cyber-attacks, financial crime and firm failure.

2.You should not expect to be protected if something goes wrong

The Financial Services Compensation Scheme (FSCS) doesn’t protect this type of investment because it’s not a ‘specified investment’ under the UK regulatory regime – in other words, this type of investment isn’t recognised as the sort of investment that the FSCS can protect. Learn more by using the FSCS investment protection checker here.

The Financial Ombudsman Service (FOS) will not be able to consider complaints related to this firm. Learn more about FOS protection here.

3.You may not be able to sell your investment when you want to

There is no guarantee that investments in crypto assets can be easily sold at any given time. The ability to sell a crypto asset depends on various factors, including the supply and demand in the market at that time.

Operational failings such as technology outages, cyber-attacks and comingling of funds could cause unwanted delay and you may be unable to sell your crypto assets at the time you want.

4.Cryptoasset investments can be complex

Investments in crypto assets can be complex, making it difficult to understand the risks associated with the investment.

You should do your own research before investing. If something sounds too good to be true, itprobably is.

5.Don’t put all your eggs in one basket

Putting all your money into a single type of investment is risky. Spreading your money across different investments makes you less dependent on any one to do well.

A good rule of thumb is not to invest more than 10% of your money in high-risk investments. Learn more here.

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

For further information about cryptoassets, visit the FCA’s website here.

Tap integrates with poundtoken, a regulated GBP stablecoin

Tap opens new doors for UK crypto investors with its integration of PoundToken (GBPT) - a fully regulated GBP stablecoin for seamless and secure transactions

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Tap has joined forces with Poundtoken to offer tap users the ability to trade, transact and hold a 100% fiat backed GBP stablecoin.

Poundtoken (ticker: GBPT) is the first GBP stablecoin to be based in the British Isles & regulated by the Isle of Man Financial Services Authority

GBPT is the only stablecoin that's currently audited by KMPG, and it publishes monthly attestations to ensure that the number of GBPT in issuance is always backed 100% by collateral held in reserves in a regulated bank. This is supported by poundtoken's real-time integration with Chainlink to provide a real time proof of reserve.

Stablecoins in general

Stablecoins offer to parties transacting on blockchain a way to store their value in tokens that are backed by assets consider 'stable' like as national fiat currencies such as USD, EUR, GBP &JPY. However they can also be backed by commodities such as gold and silver.

Currency backed stablecoins are not always 100% cash backed, but rather 100% backed by assets that are denominated in that currency.

Poundtoken deep dive:‍

Let's explore what makes poundtoken a clear choice or Tap:

1. Some currency backed stablecoins are not 100% cash-backed. GBPT however is 100% cash backed, meaning that if there were ever to be a run on the bank, all assets would be liquidated in time to pay back the token holders. With poundtoken, a holder of GBPT can always redeem 1GBP directly for every1GBPT.

2. GBPT is Backed up by audits & committed to being financially transparent. The Cash held in segregated accounts is audited monthly by KPMG. Furthermore Their partnership with Chainlink which allows holders to monitor their cash holdings in real-time.

3. Poundtoken is regulated is regulated in a mature financial environment under the British Isles, which has rigorous financial regulations and criteria that companies must meet in order to obtain a licence. Poundtoken and poundtoken.io are business names of Blackfridge SCLimited, a limited company registered in the Isle of Man and licensed and regulated by the Isle of Man Financial Services Authority as a part of their Regulatory Sandbox to carry on Class 8 (2)(a) and (4) – Money Transmission Service

4. Poundtoken is a secure ERC 20 token on the Ethereum blockchain. GBPT utilitises smart contracts that are audited and immutable, providing security to users.

"Poundtoken demonstrates the security we look for when offering new digital assets to our clients. It's a regulated asset linked to a world-renowned currency of choice for many" said ArsenTorosian, CSO at Tap. We are delighted to collaborate with poundtoken to bring a new digital store of value to our users.

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James
James
Disclaimer

This article is for general information purposes only and is not intended to constitute legal or other professional advice or a recommendation of any kind whatsoever and should not be relied upon or treated as a substitute for specific advice relevant to particular circumstances. We make no warranties, representations or undertakings about any of the content of this article (including, without limitation, as to the quality, accuracy, completeness or fitness for any particular purpose of such content), or any content of any other material referred to or accessed by hyperlinks through this article. We make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up-to-date.

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