EU Issues a Crypto Trading Warning

European Union’s regulators warned investors who buy crypto assets could be deceived by scams and “lose all their invested money”.

"Consumers face the very real possibility of losing all their invested money if they buy these assets," said three EU watchdogs in a joint statement.

The warning signals that consumers who invest in cryptocurrencies are not protected from incurring losses under current EU financial services regulations.

The authorities raised their concerns as an increasing number of investors continue to invest in over 17,000 different cryptocurrencies without completely understanding the risk these assets can bring.

"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," the statement said.

They added that buyers should also understand that producing some crypto assets comes with significant energy consumption, thereby leaving a strong environmental impact.

You May Also Be Interested In

• Bitmine reports 5.67 million ETH holdings, total assets of $10.7B
• Brent rises after Vance warns Israel against breaking ceasefire
• Citi lowers natural gas price forecasts on easing Mideast tensions