Regulators worry that consumers are buying crypto assets without being fully aware of the risks.
London: Consumers run the risk of losing all their money invested in crypto assets and could fall prey to scams, Federal securities, banking and insurance watchdogs. European Union said in a joint statement on Thursday.
“Consumers face the very real possibility of losing all of their investment if they purchase these assets,” the three EU authorities said in a statement.
It marks a series of direct warnings to consumers about crypto assets by European Union authorities, claiming that consumers have no protections or claims. in accordance with applicable European Union financial services law.
Regulators are increasingly worried that more and 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 risk, say regulators. management said.
“Consumers should be wary of the risk of misleading advertising, including through social media and influencers. Consumers should be especially wary of promises of quick returns or tall, especially those that look too good to be true,” the statement said.
Consumers should also be aware that energy consumption to produce certain crypto assets is high and the environmental impact of this, the statement said.
