Regulators are concerned that consumers are buying crypto assets without being fully aware of the risks.
London: The European Union’s securities, banking and insurance regulators said in a joint statement on Thursday that consumers are at risk of losing all their money invested in crypto assets and could fall victim to scams.
“Consumers face the very real possibility of losing all of their invested money when they purchase these assets,” three EU officials said in a statement.
This marks a direct warning to consumers about crypto assets by EU authorities, stating that consumers have no protection or recourse for compensation under current EU financial services law.
Regulators are increasingly concerned that more consumers are buying 17,000 different crypto assets, including bitcoin and ether, which account for 60% of the market, without being fully aware of the risks, regulators said.
“Consumers should be alert to the risks of deceptive advertising, including on social media and influencers. Consumers should be especially wary of fast or high returns promised, especially those that are too much to be true,” the statement said. Looks good.”
Consumers should also be aware that the energy consumption for the production of certain crypto assets is high and has environmental impacts, the statement said.