The United Kingdom's financial regulator, the Financial Behave Authority, has posted a alarm near cryptocurrency investment amid a major crash in crypto markets.

In a Monday statement, the FCA said that crypto investment and lending are associated with a loftier level of risk, stressing that investors should be ready to lose all their money while investing in crypto.

Citing a number of risks including price volatility, product complexity, and charges and fees, the FCA said that investors are taking charge of crypto-associated risks:

"Consumers should be aware of the risks and fully consider whether investing in high-return investments based on cryptoassets is appropriate for them. They should check and carefully consider the cryptoasset business involved."

The regulator also stated that crypto investors are unlikely to have access to major consumer protection institutions like the Financial Ombudsman Service or the Financial Services Compensation Scheme if something goes wrong.

The FCA noted that companies offering crypto-related services should brand certain that they comply with all relevant regulatory requirements and are authorized by the FCA. As of Sunday, all U.K.-based crypto-asset firms must be registered with the FCA nether regulations to tackle money laundering, the agency wrote. "Operating without a registration is a criminal offence," the FCA added.

The FCA's crypto alarm comes amongst a major drop in crypto markets subsequently Bitcoin (BTC) recorded its new all-fourth dimension high of nearly $42,000 on Fri. On Jan. 11, BTC saw a massive selloff, briefly diving below the $33,000 threshold. As of publishing time, BTC is trading effectually $35,000, down most 14% over the past 24 hours, according to information from Cointelegraph's Bitcoin cost index.

The latest crypto market crash is not exclusive to Bitcoin, as all meridian x cryptos past market cap have posted major losses, with altcoins like Ether (ETH) dropping nigh 19%.