According to the report of Reuters, this is a direct warning to the people regarding crypto assets from the EU authorities. This indicates that those investing in crypto have no protection or compensation provision under the Financial Services Act of the EU. Regulators are concerned that the number of people investing in cryptocurrencies, including Bitcoin and Ether, is increasing. Bitcoin and Ether account for 60 percent of the total crypto market. Regulators say that people are not fully aware of the risks associated with cryptocurrencies.
According to the statement, “Customers should be alert to deceptive advertisements. These include advertisements delivered through social media and influencers. Customers need to be especially cautious about guarantees of quick or high returns.” Apart from this, people should also keep in mind that mining of some cryptocurrencies consumes a lot of electricity and this has a bad effect on the environment. Even before this, apprehensions about cryptocurrencies have been raised from the side of the EU. Some other international bodies are also opposing cryptocurrencies.
These include the International Monitor Fund (IMF). The IMF has also put a condition to reduce the use of cryptocurrencies in the deal related to the restructuring of debt-ridden Argentina’s debt. The IMF believes that cryptocurrencies, being decentralized and unregulated, can be used for illegal activities. Additionally, volatility is also a major concern in the cryptocurrencies segment. The IMF has consistently opposed cryptocurrencies. Last year, the IMF called El Salvador’s legalization of bitcoin wrong. The IMF said that this could harm the economic stability of El Salvador.
(This news has not been edited by NDTV team. It has been published directly from Syndicate feed.)<!–
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