Consumers are at risk of losing all their money they have invested in crypto-assets and could fall victim to fraud, European Union regulators on the capital market, banks and insurance companies said in a joint statement today.
“Consumers are faced with the very real possibility of losing all the money they have invested if they buy such items,” the three European authorities said in a statement.
This statement signals an intensification of immediate consumer warnings by the EU authorities about cryptocurrencies, as it points out that consumers have no protection or recourse to compensation under existing EU financial services law.
Regulators are increasingly concerned that more and more consumers are buying 17,000 different cryptocurrencies, including bitcoin and ether, which account for 60% of the market, without being fully aware of the risks.
“Consumers should be very careful about the dangers of misleading advertising, including through social networking sites and influencers. Consumers should be especially wary of promising fast and high returns, especially those that look too good.” to be true, “the statement said.
Consumers should also be aware that energy consumption for the production of some cryptocurrencies is high, as well as for the environmental impact that this production causes, the statement said.
Source: AMPE
Source: Capital
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