In what could possibly be the surprise of the century, the Financial Services Compensation Scheme (FSCS) in the United Kingdom has stated their coverage does extend out to digital currencies.
Mark Oakes, who heads the communications division at the FSCS said, “FSCS protects up to £85,000 of depositors’ money in savings and current accounts with UK authorised banks, building societies and credit unions. However, virtual currencies are not regulated by the UK regulators, so FSCS does not provide protection in the event of any losses suffered by consumers.”
Of course, this really doesn’t come as a surprise because anyone who gets involved with bitcoin or other digital currencies should be aware there is no government backing of any kind.
The FSCS operates similarly to the FDIC (Federal Deposit Insurance Corporation), which will protect consumer balances of up to $250,000 per account in the event of loss. (via CoinDesk)
