“Customers face the very actual chance of dropping all their invested cash in the event that they purchase these belongings,” the three EU authorities stated in an announcement.
It marks a racheting up of direct warnings to customers about cryptoassets by EU authorities, spelling out that customers haven’t any protections or recourse to compensation beneath present EU monetary providers regulation.
Regulators are more and more fearful that extra customers 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 stated.
“Customers ought to be alert to the dangers of deceptive ads, together with by way of social media and influencers. Customers ought to be notably cautious of promised quick or excessive returns, particularly people who look too good to be true,” the assertion stated.
Customers also needs to pay attention to that vitality consumption for producing some cryptoassets is excessive and the environmental influence this has, the assertion stated.