Customer Educational Note
Key Facts about LondonLink and Investing in Cryptoassets
LondonLink is registered in Lithuania
LondonLink is registered in Lithuania to provide cryptoasset services. This means that LondonLink can provide cryptoasset services from Lithuania to customers around the world, including in the UK, even though we are not registered or regulated with the UK’s Financial Conduct Authority (FCA).
LondonLink provides 2 core services: (1) our OTC Service and (2) our Automated Service
(1) OTC Service - where a customer has their own external cryptoasset wallet and buys or sells cryptoassets from/to us using that cryptoasset wallet. If a customer buys a cryptoasset from us, it belongs to the customer as soon as it is received into the customer’s wallet address. From that point onwards, the customer is responsible for safely storing it.
There are different external cryptoasset storage solutions, each with their advantages and disadvantages. Our customers are encouraged to do their own research into which cryptoasset storage solution is most appropriate for them.
(2) Automated Service - where a customer deposits cryptoassets or transfers fiat into an account with us for the purpose of then trading with them. We custody those cryptoassets on behalf of the customer until the customer withdraws them to their own external cryptoasset wallet or converts them into fiat and then requests to transfer that fiat to their bank account. Put another way, when we custody your cryptoassets, we hold their legal ownership and you retain their beneficial ownership and associated risks. If you then withdraw them to your own cryptoasset wallet, you hold both their legal and beneficial ownership.
We have assessed the suitability of the cryptoassets we offer
We have assessed all the cryptoassets we consider to be the most suitable for our customers, whether using our cryptoasset exchange/brokerage services or our custody services. Currently, LondonLink customers can buy and sell Bitcoin (BTC), Ether (ETH), Tether (USDT) and USD Coin (USDC). LondonLink trades in Euros (EUR) and Pound Sterling (GBP).
Information about customers’ rights and obligations regarding our services can be found in our Terms & Conditions, which customers agree to when they register with LondonLink.
LondonLink does not provide advice
We strive to provide the best cryptoasset investment experience for our customers. However, we do not provide any financial or investment advice. Instead, we strongly recommend that all customers do their own research before they invest in cryptoassets.
Cryptoassets can be very volatile
The value of cryptoassets can be very volatile, meaning that their value can go sharply up and sharply down very quickly. Even “stablecoins” such as USDT and USDC, which are designed to maintain a stable value relative to the US Dollar, can sometimes “de-peg”, meaning that their value goes up or down compared with the US Dollar. As a result, it is possible for a customer to lose all the money that they have invested in cryptoassets, including in stablecoins.
Another risk associated with stablecoins is that it may not be possible to exchange them for the underlying collateral, which is usually held by the stablecoin issuer or its bank.
Cryptoasset investing can be risky
All forms of investment carry risk. Usually, the more complex an investment, the more difficult it is to identify and assess all the risks. This applies to all cryptoasset investments. We have done our own research into the risks associated with the cryptoassets that we offer but we still strongly encourage customers to carefully consider the risks before investing.
Diversification can mitigate the risks
Investing in only one type of investment may be the preferred option for some investors. However, diversifying across a variety of investments and/or asset classes is generally considered an effective way of mitigating the impact of a particular investment performing badly. The FCA recommends that retail customers should invest no more than 10% of their net assets in restricted mass-market investments, such as cryptoassets.
Always be vigilant
Investing in cryptoassets is very different to investing in mainstream investments such as publicly traded stocks and bonds. Terms like “blockchain”, “distributed ledger technology”, “wallets”, “addresses”, “private keys” and “public keys” etc can be confusing. However, there are a few critical points to remember:
- Always do your own research before investing in any cryptoasset.
- Only use services from reputable businesses.
- Be wary of adverts that promise high returns on cryptoasset investments, even when they might appear to be endorsed by celebrities.
- Ensure you use a safe method to store your cryptoassets and you understand how it works.
- If you use your own external cryptoasset wallet, do not share your “private keys'' with anyone. If you do, they get access to your cryptoassets and could steal them. Giving your private key to someone else is similar to giving them your front door key or your online banking password.
Losses are not covered by any compensation scheme
You might have heard of the UK’s Financial Services Compensation Scheme (FSCS), which pays out compensation in certain circumstances. For example, the FSCS will automatically compensate someone who holds money with a UK-authorised bank, building society or credit union. Please note that the FSCS does not apply to cryptoasset investments. Therefore, if your cryptoasset investments perform badly, you will not be entitled to any compensation under the FSCS.
Similarly, if LondonLink ever became insolvent, it might be unable to continue trading with customers. Further, any cryptoassets, GBP or EUR that LondonLink held at that time could be lost.
Please be patient
The way that most blockchains are designed means that cryptoasset transactions can take some time to complete. For example, most Bitcoin transactions take around 10 minutes to confirm. However, they can sometimes take longer, for example when the Bitcoin network has to process lots of transactions at the same time.
Transactions can also be delayed as a result of an outage - for example, an outage to a blockchain’s infrastructure or at one of our service providers.
We will always keep you informed of any significant delay affecting your cryptoasset transactions.
How to make a complaint
We endeavour to provide an excellent service to all our customers. However, we might not always get it right. If you are unhappy with any aspect of our service, please contact one of our brokers or submit a complaint via our complaints webform.
Please note that the UK's Financial Ombudsman Service (FOS) will not be able to assist you with any complaint against LondonLink as we are not regulated in the UK.
Where to find more information
- Our services - our website.
- Our security measures - our summary.
- A summary of the key risks of investing in cryptoassets - our Risk Warning.
- How we collect and process customers’ personal data - our Privacy Policy.
- Your rights and obligations regarding our services - our Terms & Conditions, which you agreed to when you registered with us.