Beware Of Scams, European Union Warns Investors To Stay Away From Crypto Investments

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Beware Of Scams, European Union Warns Investors To Stay Away From Crypto Investments

LONDON – Worried about the increasing number of cases of digital asset fraud, three European Union financial services authorities have warned investors to stay away from all forms of cryptocurrency investment.

In an official announcement on Thursday (17/3/2022), three financial services authorities including the European Union’s securities, banking and insurance supervisors explained that people should avoid investing in crypto assets because they will not guarantee the security of these investments.

The three EU authorities said that the presence of digital assets instead of benefiting investors risked inviting fraudsters to eliminate all their investment money.

“Consumers face a very real possibility of losing all their invested money if they buy these assets,” the three EU authorities said, quoted by the Nasdaq.

Especially after some time, more and more investors are interested in investing in crypto assets. It was recorded that around 17,000 crypto assets such as Bitcoin and Ether were sold out, after a lot of digital investment advertisements on social media networks.

By offering fantastic returns, fraudsters will generally attract the attention of new investors who are not aware of this investment, the rise of these crimes is feared to trigger market manipulation.

This is what makes the EU financial government prohibit the adoption of crypto assets in the region, especially the vocality of cryptocurrencies that are difficult to stabilize also has a large potential to bring losses to investors.

Even the excessive mining or mining of coins can trigger natural damage. The emergence of these negative impacts has forced the three EU financial services authorities to strictly prohibit the circulation of cryptocurrencies in their territory.

“Consumers should be aware of the risks of misleading advertising, including through social media and influencers,” the statement said.

By banning crypto investment activities in society, the European Union’s securities, banking and insurance supervisors hope that in the future investors will no longer use cryptocurrencies as a form of investment given the many negative impacts caused by this digital asset.

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