The regulatory bodies of the European Union on banking, securities, insurance and pension payments warned consumers about the risks associated with investing in the digital currency.
The regulators submitted a joint warning, which concerns crypto currency, including bitcoin .
As you know, lately, the crypto fund is unstable and demonstrates all the signs of a “soap bubble”.
It is for this reason that crypto-currency investors risk losing large amounts or even all of their funds, which they invested in digital currencies.
Note that the warning was issued by three regulatory bodies:
- EBA (banking).
- ESMA (sphere of securities).
- EIOPA (insurance and pensions).
The fear is based on the fact that most investors do not understand the risks that exist today.
The statement published on Monday says that venture capitalists and trading platforms are not regulated in the European Union at the legislative level.
Therefore, in case of loss of capital, use insurance or get protection will be impossible.
For example, if a crypto-currency platform is attacked by hackers and customers lose their funds, then no EU law can provide a return of lost capital.
In addition, representatives of the above-mentioned bodies are concerned about existing operational problems.
“In the past, some exchanges on the crypto-currency market, were subject to serious operational problems. In the process of the existing failures, consumers did not have the opportunity to purchase or sell venture capital. As a result, they suffered losses due to fluctuations in the value of the Crypto currency. “
The published document provides basic information, which deals with the fact that crypto assets are used in many areas. The most common fund is bitcoin , launched in 2009.