Three European regulators – EBA, ESMA and EIOPA – released a joint statement warning consumers about the risks associated with investing in digital assets.
The European Banking Supervisory Authority (EBA), the European Insurance and Pensions Supervisory Authority (EIOPA) and the European Securities and Markets Authority (ESMA) reported that they had studied the cryptocurrency market and concluded that many digital assets are very risky and speculative .
The regulators explained that their warning was a response to the growing interest of consumers in crypto assets, as well as the “aggressive” promotion of cryptocurrency products among the population.
In their opinion, digital assets are not suitable for most retail consumers either as an investment or as a means of payment or exchange. Many people who buy crypto assets face the real possibility of losing their money.
Also, European regulators noted that advertising of crypto assets often deliberately misleads citizens. You should be especially careful when advertising promises a quick and safe way to get rich.
In addition, regulators stressed that while consumers do not have legal remedies against cryptocurrency scams, because most of these products do not fall under existing financial services rules in the EU.
Recall that in January of this year, the acting head of the US Comptroller of the Currency (OCC), Michael J. Hsu, called for the development of a reliable legal framework for cryptocurrencies.
Source: Bits
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