Can I get a crypto financial adviser?

Approximately seven million Brits have now got money invested in cryptocurrencies according to the latest data from the FCA, with increasing numbers viewing crypto assets as part of their ‘wider investment strategy.’  

Over a quarter (26%) have used long-term savings to buy crypto assets, while 14% have even gone so far as to use credit cards and overdrafts due to the fear of missing out.  

It’s easy to see why cryptocurrencies have become so popular. At the time of writing, the compound annual growth rate for Bitcoin was 102.35%. 

However, while many people have enjoyed impressive gains, there are also many who have nursed spectacular losses, and more cautious investors will value crypto investment advice. 

According to the FCA, 20% of investors are currently being influenced by friends and family. 

Where to get crypto investment advice 

At the moment, crypto assets remain largely unregulated in the UK – unlike more conventional savings and investments. That means financial advisers who are regulated by the FCA are not able to offer advice on crypto assets or make any recommendations. 

As a result, crypto investors are obliged to do their own research and access guidance online. 

Some crypto trading platforms, for example, offer investors access to educational resources, training academies, community support and virtual trading by letting you practice with a dummy portfolio first. 

However, it’s important to tread carefully and view crypto guidance and promotions with caution, particularly on social media. 

The marketing of crypto assets is regulated, so there should be prominent warnings about the risks of investing. 

You also should not be incentivised with free gifts or bonuses when referring a friend. These promotions could be at best illegal or, worse, a scam. 

Can I get crypto advice from an accountant? 

Although it’s not possible to get crypto investment advice in the UK, if you are already a crypto investor, you may be able to get crypto tax advice. 

Specialist accountants, for example, will be able to help you complete your self-assessment tax return, determine what tax is due and offer tailored tax planning advice to keep your tax bill down. 

Will crypto investment advice ever be regulated?

The FCA has repeatedly warned that investing in cryptocurrency is speculative and high risk and that investors could, potentially, lose all of their money. 

As long as it remains unregulated, there is no protection if things go wrong – you won’t be protected by the Financial Services Compensation Scheme (FSCS), nor will you have recourse to the Financial Ombudsman Service if you were mis-sold or given poor advice. 

However, the UK government has recognised and acknowledged growing awareness, interest and investment in cryptocurrency.  

And, in order to protect individuals from scams and rogue practices, it recently proposed new legislation for firms offering crypto asset services. 

The new rules would bring crypto exchanges, dealers and agents under the regulatory control of the FCA. Just like providers of more traditional financial services providers, they will have to meet standards for transparency, operational resilience and offer protection for consumers. 

As part of this, the new rules include a proposed ban on allowing consumers to buy cryptocurrency with borrowed money. Following consultation with the industry, the new rules are expected to come into force by the end of 2025. 

However, while the new rules should increase consumer protection, they may not have a significant impact on the availability of crypto financial advice. 

Can I still discuss cryptocurrency with a financial adviser? 

Financial advisers will often encourage you to talk about all areas of your finances.  

While financial advisers are not currently able to offer advice on crypto assets or make any crypto recommendations, they can offer you advice on your wider investment strategy. 

Are there any ways to invest in crypto in a regulated way? 

Although you can’t currently get regulated crypto investment advice, you ‘may’ be able to get guidance on investing in cryptocurrency indirectly. 

For example, you may be able to buy shares in companies that are involved in cryptocurrency, such as a crypto broker. Or you can invest in an exchange-traded fund (ETF) with exposure to a range of crypto-related businesses. 

These investments could be held in a stocks and shares individual savings account (ISA) or a pension. 

There are some ETFs that invest in cryptocurrencies directly. However, these are currently only available to professional investors in the UK. 

Final thoughts on crypto investment advice

Financial advisers in the UK are not currently regulated to offer crypto investment advice, which means investors are relying on the support of crypto platforms, online communities, as well as friends and family to support them with decision-making. 

Increased regulation in the future may improve consumer protection, particularly from scams and dodgy practices. However, new rules won’t necessarily reduce the inherent risks of investing in cryptocurrency. 

To get more insight into the right investment strategy for you, let Unbiased match you with a qualified financial adviser.