Investors must face the possibility of losing all their money in crypto assets, a group of top European Union (EU) financial regulators warned consumers on Thursday.
- The regulators cautioned that crypto assets are "highly risky" and measures that don't exist in the EU now are needed to protect consumers.
- The message was published by the European Supervisory Authorities (ESAs), which is made up of the European Banking Authority (EBA), European Securities and Markets Authority (ESMA) and European Insurance and Occupational Pensions Authority (EIOPA).
- The group said that crypto investors must "face the very real possibility of losing all their invested money if they buy these assets," adding that investors are privy to misleading advertisements, including those on social media and from influencers. It also warned that crypto investors "should be particularly wary of promised fast or high returns, especially those that look too good to be true."
- "The ESAs also warn consumers that they should be aware of the lack of recourse or protection available to them," the message read, adding that the proposed regulations for crypto in the EU is still moving through the union's legislative process.
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