LONDON: EU regulators Thursday warned consumers may lose all their money invested in crypto currency and could fall prey to scams.
The European Union’s securities, banking and insurance watchdogs have issued the warning in a joint statement.
Bitcoin to Pak Rupee on March 17, 2022
“Consumers face the very real possibility of losing all their invested money if they buy these assets,” according to the statement.
It marks a racheting up of direct warnings to consumers about cryptoassets by EU authorities, spelling out that consumers have no protections or recourse to compensation under existing EU financial services law.
Bitcoin to Pak Rupee on March 16, 2022
An international new agency noted that regulators are increasingly worried that more consumers are buying 17,000 different cryptoassets, including bitcoin and ether, which account for 60 per cent of the market, without being fully aware of the risks, the regulators said.
Bitcoin to Pak Rupee on March 15, 2022
“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,” according to the said.
Consumers should also be aware of that energy consumption for producing some cryptoassets is high and the environmental impact this has, the statement said.
