London: Consumers threat shedding all their cash invested in crypto belongings 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 crypto belongings by EU authorities, spelling out that buyers don’t have any protections or recourse to compensation beneath current EU monetary providers regulation.
Regulators are more and more fearful that extra customers are shopping for 17,000 totally different crypto belongings, together with bitcoin and ether, which account for 60% of the market, with out being absolutely 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.
Consumers also needs to concentrate on that power consumption for producing some crypto belongings is excessive and the environmental influence this has, the assertion stated.