Cryptocurrency & Bitcoin SIPP Claims — Pension Funds Invested in Unregulated Crypto Assets
Nadeem Pervazis a solicitor at Edward & Amaury Solicitors, a law firm authorised and regulated by the Solicitors Regulation Authority. Content is reviewed for legal accuracy and compliance with FCA guidance and SRA conduct standards.
TL;DR — Quick Summary
- ▸Cryptocurrency (Bitcoin, Ethereum etc.) is not regulated by the FCA — investing pension savings in crypto assets was almost always unsuitable.
- ▸Claims may be available against the adviser, the SIPP operator (following Adams v Options [2021]), and any introducer.
- ▸Extreme crypto price volatility combined with zero regulatory protection makes these assets entirely inappropriate for pension investment.
- ▸FSCS claims may be available up to £85,000 if the adviser firm has since failed.
- ▸Time limits apply — do not delay seeking legal advice.
The FCA has never regulated cryptocurrency as an investment. Placing pension savings — money earmarked for retirement — into Bitcoin, Ethereum, or other crypto assets via a SIPP was almost always entirely unsuitable. If your pension was invested in cryptocurrency, you may have significant claims against the adviser, the SIPP operator, or both.
Quick Answer
Cryptocurrency is not FCA-regulated. Pension investment in crypto assets was almost always unsuitable. Claims may be available against the adviser, SIPP operator, or through the FSCS. Contact us for a free, no-obligation review.
FCA Warning: No Regulatory Protection for Crypto
The FCA has repeatedly warned consumers that crypto assets are high-risk, speculative investments with no regulatory protection. Investors "should be prepared to lose all their money." This is the regulator's own position — which makes advice to invest pension savings in crypto assets almost impossible to defend as suitable.
Why Cryptocurrency is Unsuitable for Pension Investment
No FCA regulation
Crypto assets are not regulated by the FCA — there is no regulatory protection if the investment fails.
Extreme price volatility
Bitcoin has lost 50–90% of its value on multiple occasions. This level of volatility is incompatible with pension investment objectives.
No FSCS protection
Losses on unregulated crypto assets are not covered by the FSCS — unlike regulated investment products.
No underlying asset value
Unlike property or shares, crypto assets have no underlying productive asset — value depends entirely on speculative demand.
Incompatible with pension objectives
Pension savings are earmarked for retirement income — capital preservation and steady growth, not extreme speculative risk.
SIPP Operator Liability — Adams v Options UK [2021]
The Court of Appeal's decision in Adams v Options UK Personal Pensions LLP [2021] established that SIPP operators can bear liability for accepting unsuitable investments where they failed to conduct adequate due diligence on the investment and the introducing firm. This principle applies to SIPP operators who permitted cryptocurrency investments without appropriate due diligence — including checking whether the adviser was authorised to advise on such investments.
Other SIPP Investment Claims
We handle all types of SIPP mis-selling including storage pods, overseas property, UCIS, green energy, hotel rooms, forestry and land, and mini-bonds and care homes.