May 29, 2022
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Be ready to lose all your money in crypto, EU regulators warn

Be ready to lose all your money in crypto, EU regulators warn

LONDON — Customers danger shedding all their money invested in cryptoassets and will fall prey to scams, the European Union’s securities, banking and insurance coverage watchdogs stated in a joint assertion on Thursday.

“Consumers face the very real possibility of losing all their invested money if they buy these assets,” the three EU authorities stated in an announcement.

It marks a ratcheting up of direct warnings to customers about cryptoassets by EU authorities, spelling out that customers don’t have any protections or recourse to compensation beneath present EU monetary providers regulation.

Regulators are more and more apprehensive that extra customers are shopping for 17,000 totally different cryptoassets, together with bitcoin and ether, which account for 60% of the market, with out being totally conscious of the dangers, the regulators stated.

“Consumers should be alert to the risks of misleading advertisements, including via social media and influencers. Consumers should be particularly wary of promised fast or high returns, especially those that look too good to be true,” the assertion stated.

Customers also needs to pay attention to that vitality consumption for producing some cryptoassets is excessive and the environmental affect this has, the assertion stated. — Reuters

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