The Cypriot official complains that the interest of investors in cryptocurrencies is growing all over the world, but at the same time, the risks of liquidity, volatility, cyber attacks and fraud are growing.
The Chairman of the Cyprus Securities and Exchange Commission (CySEC), Dr. George Theocharides, warned crypto investors about the risks associated with investing in digital assets:
“The rapid growth of the crypto asset market, as well as the systems that support it, creates new challenges not only for investors, but also for regulators. While technological innovation promises promising opportunities, such as improved rapid access to financial services, the immaturity of the ecosystem and the assets themselves could undermine confidence building.”
The expert also emphasized the danger of aggressive cryptocurrency marketing campaigns supported by celebrities. Celebrities often mislead investors, especially retail ones.
Theohharides added that CySEC is committed to playing a key role in improving investor awareness of the risks associated with investments. According to him, regulation of the crypto industry is something that regulators should do urgently.
Earlier, US Securities and Exchange Commission (SEC) Commissioner Hester Peirce urged the agency to clarify in which cases non-fungible tokens (NFTs) can be considered securities.
Source: Bits
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