Be ready to lose all your money in crypto, EU regulators warn

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LONDON (Reuters) – Consumers threat shedding all their money invested in cryptoassets and will fall prey to scams, the European Union’s securities, banking and insurance coverage watchdogs mentioned in a joint assertion on Thursday.

“Consumers face the very actual chance of shedding all their invested money in the event that they purchase these property,” the three EU authorities mentioned in a press release.

It marks a racheting up of direct warnings to customers about cryptoassets by EU authorities, spelling out that customers don’t have any protections or recourse to compensation beneath current EU monetary providers regulation.

Regulators are more and more fearful that extra customers are shopping for 17,000 totally different cryptoassets, together with bitcoin and ether, which account for 60% of the market, with out being absolutely conscious of the dangers, the regulators mentioned.

“Consumers must be alert to the dangers of deceptive ads, together with by way of social media and influencers. Consumers must be notably cautious of promised quick or excessive returns, particularly people who look too good to be true,” the assertion mentioned.

Consumers must also concentrate on that power consumption for producing some cryptoassets is excessive and the environmental affect this has, the assertion mentioned.

(Reporting by Huw Jones; Editing by Toby Chopra)



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