Crypto Trading: Be prepared to lose all your money, warn EU regulators

Consumers are at risk of losing all the money they have invested in cryptocurrency assets and may fall prey to fraud, European Union securities, banking and insurance officials said in a joint statement on Thursday. “Consumers have a real chance of losing all the money they have invested if they buy these assets,” the three EU officials said in a statement.

EU authorities point out that the number of direct warnings to consumers about cryptocurrencies is increasing, with consumers not using protection or compensation under EU financial services law.

Regulators are increasingly concerned that more consumers are buying 17,000 different cryptocurrencies, including Bitcoin and Ether, which account for 60 percent of the market without fully realizing the risks, regulators said.

“Consumers need to be aware of the dangers of misleading advertising, including through social media and social media. Consumers should be especially wary of fast or large promised benefits, especially those that look good to be true,” the statement said.

Meanwhile, consumers should also be aware of the high energy consumption of some cryptocurrencies and the environmental impact that this has, the statement said.

© Thomson Reuters 2022

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