the big three european supervisory authorities (the European Banking Authority, the European Securities and Markets Authority, and the European Pension and Retirement Insurance Authority) have warned consumers this Thursday that “many crypto assets have a character very risky and speculative” and “are not suitable as an investment or as a means of payment or exchange for most retail consumers.”
🔴 #CryptoAssets are highly risky and speculative. ESAs set out steps consumers can take to make informed decisions→ https://t.co/qMrP1zBUlk #BeCryptoAware
🇪🇺🇺🇦 ESAs welcome @EUCouncil clarification on measures against 🇷🇺 and 🇧🇾 entities + individuals regarding crypto-assets pic.twitter.com/2lsRbk1ejG
— EU Banking Authority – EBA 🇪🇺 (@EBA_News) March 17, 2022
In a highly unusual gesture, the three agencies have issued a joint note in which they alert buyers that “they face the real possibility of lose all the money invested if they buy these assets and must be aware of the risks derived from the false advertisingincluding that carried out through social networks and by influencers“. Likewise, they have been urged to be “particularly cautious when it comes to promises of high or quick returns, especially those that sound too good to be true.
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Consumers, supervisors have insisted, must be aware of the lack of procedures to be able to claimas well as from the absence of protection, since crypto assets and the products and services related to them in general are outside the protection offered by the regulations in force in the European Union on financial services. Thus, the European Union is still working on a regulation to regulate them, known as MiCA.
The @CNMV_MEDIA the @Bank of Spain and the DG of Insurance and Pension Funds @_minecogob endorse the content of the alert from the European Supervisory Authorities on the risks of #cryptoassets #Ojoconloscryptos #BeCryptoAware https://t.co/GJLe2OZZLU #bdePress pic.twitter.com/ohnog6Hqm2
– Bank of Spain (@BancoDeEspana) March 17, 2022
on your own joint notethe Bank of Spainthe National Securities Market Commission (CNMV) and the General Directorate of Insurance and Pension Funds of the Ministry of Economy have signed the statement of the European supervisors. They have already issued similar warnings in 2018 and 2021.