“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 a press release.
It marks a racheting 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 legislation.
Regulators are more and more nervous 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 totally conscious of the dangers, the regulators stated.
“Customers must be alert to the dangers of deceptive ads, together with through social media and influencers. Customers must be notably cautious of promised quick or excessive returns, particularly people who look too good to be true,” the assertion stated.
Customers must also concentrate on that vitality consumption for producing some cryptoassets is excessive and the environmental impression this has, the assertion stated.