The UK’s Financial Conduct Authority (FCA) has issued an important warning to cryptocurrency investors regarding the memecoin Retardio, which operates on the Solana blockchain. The regulator clarified that the Financial Ombudsman Service will not offer protection to investors in case of disputes involving the coin. Additionally, investors are also not covered by the Financial Services Compensation Scheme in the event of the project’s insolvency. According to the FCA, the risks of investing in Retardio are high, as “If things go wrong, it means you are unlikely to get your money back if the company goes bust.”
The warning comes amid a series of FCA crackdowns on unregulated cryptocurrencies targeting consumers in the UK. Despite the warnings, the market reacted unexpectedly, with Retardio’s value rising by 16%. The memecoin’s market cap recently hit $111 million, although it previously reached nearly $240 million. Retardio is currently trading at $0.09011.
The response from the Retardio community was not long in coming. On social media, the news was received with humor, which apparently further encouraged demand for the token. Meanwhile, the FCA has been stepping up efforts to regulate the cryptocurrency market more broadly. The agency recently released a discussion paper seeking industry input on the regulatory framework for the sector. This year, the FCA increased the size of its dedicated cryptocurrency team to over 100 staff, with the policy team growing rapidly, reflecting the regulator’s commitment to adapting and responding to market dynamics.