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Be able to lose all of your cash in crypto, EU regulators warn

Be able to lose all of your cash in crypto, EU regulators warn

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LONDON — Customers danger shedding all their cash 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.

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

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

Regulators are more and more apprehensive that extra shoppers are shopping for 17,000 completely 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.

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

Customers must also pay attention to that vitality consumption for producing some cryptoassets is excessive and the environmental affect this has, the assertion mentioned. — Reuters

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