Legal Policies and Compliance Information
Crypto Risk Summary
This summary is designed to provide you with a clear and balanced overview of the inherent risks associated with cryptoasset transactions and investments. Its purpose is to educate you about the potential for financial loss, the unregulated nature of the market, and the complexities of these assets. We believe that informed customers are better equipped to make responsible financial decisions.
This summary applies to corporate clients considering cryptoasset services through Jigzo's platform. Not all services are available in all jurisdictions or to all clients. It is not exhaustive and should not be considered financial advice. Rather, it serves as a crucial resource to help you understand the high-risk nature of cryptoassets before you decide to transact or invest.
The value of most cryptoassets is highly volatile, meaning their prices can drop as quickly as they rise. Customers should be prepared for the possibility of losing the full value of their investment in cryptoassets.
While Jigzo adheres to regulatory requirements in the jurisdictions it operates, the broader cryptoasset market remains largely unregulated. Risks include, but are not limited to, cyber-attacks, financial crime, and the failure of third-party service providers.
A transfer of cryptoassets to the wrong address cannot be recalled or reversed by anyone. There is no equivalent of a payment recall or chargeback. A mistake is permanent.
An asset described as a stablecoin is not guaranteed to hold its value. Its value depends on the issuer's reserves and conduct, and stablecoins have failed.
Where a third party holds cryptoassets for you, your position depends on that party's solvency and on whether the assets are legally separated from its own. Not all custodians provide that separation.
Investments in cryptoassets are not recognised as ‘specified investments’ under UK regulations or other regulatory frameworks. Therefore, they are not covered by compensation schemes such as the Financial Services Compensation Scheme (FSCS) in the UK.
While complaints against regulated firms may be handled by relevant dispute resolution bodies such as the Financial Ombudsman Service (FOS) in the UK, poor investment performance or losses related to cryptoassets are not covered.
There is no guarantee that Customers will be able to sell their cryptoassets when desired. Liquidity depends on market conditions, including supply and demand at a given time.
Issues such as technology outages, cyber-attacks, or operational failings may delay the sale or transfer of cryptoassets.
Cryptoasset investments can be complex, making it difficult for Customers to fully understand the associated risks. Jigzo encourages all Customers to conduct thorough research before investing and to avoid offers that seem too good to be true.
Concentrating investments in cryptoassets increases risk. Jigzo recommends diversifying investments and advises against allocating more than 10% of funds to high-risk investments like cryptoassets.
Customers should research the specific characteristics and risks of any cryptoasset before transacting, including its liquidity, its volatility and the reliability of its pricing.
Jigzo encourages Customers to educate themselves about cryptoassets and the associated risks. For more information, Customers can consult resources provided by financial regulators, including:
• The Financial Conduct Authority (United Kingdom)
https://www.fca.org.uk/consumers/cryptoassets
• The European Securities and Markets Authority (European Union)
https://www.esma.europa.eu/esmas-activities/digital-finance-and-innovation/crypto-assets
Cryptoasset investments are high-risk and may not be suitable for all Customers. This policy serves as a general overview of risks and does not constitute financial or investment advice. Customers are responsible for making informed decisions and should consult professional advisers where necessary.
For further information about cryptoassets and how to protect yourself, visit regulatory websites such as FINTRAC’s or the FCA’s cryptoasset information pages.