The European Union's securities, banking and insurance watchdog said crypto investors were at risk of losing all their money and could even fall victim to fraud.
"Investors face a very real possibility of losing all their invested money if they buy this asset," the three EU authorities said in an official statement.
This marks an increase in live alerts regarding crypto assets. Moreover, investors do not get legal protection or compensation because it is not regulated in the financial services law.
Regulators are increasingly concerned that more investors are buying 17,000 different crypto assets, including bitcoin and ether, which make up 60% of the market, without fully realizing the risks.
"Consumers should be aware of the risks of misleading advertising, including through social media and influencers. Consumers should be especially wary of quick returns or the high yields promised," the authority said.
In addition, investors should also be aware of the impact of energy consumption to produce some high-end crypto assets, including the impact of environmental damage.
Subscribe Daily Post or Follow Google News to update information quickly, Thank you..!!