Crypto Trading: Be Ready to Lose All Your Money, Warn EU Regulators

Customers danger shedding all their cash invested in cryptoassets and will fall prey to scams, the European Union’s securities, banking and insurance coverage watchdogs mentioned 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 mentioned in an announcement.

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

Regulators are more and more anxious that extra shoppers are shopping for 17,000 totally different cryptoassets, together with Bitcoin and Ether, which account for 60 % of the market, with out being absolutely conscious of the dangers, the regulators mentioned.

“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 mentioned.

In the meantime, shoppers also needs to pay attention to that power consumption for producing some cryptoassets is excessive and the environmental influence this has, the assertion mentioned.

© Thomson Reuters 2022

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