Crypto-assets are something that an ever increasing number of investors know about. Far less well-known is that there are various types of crypto-assets covered by the term, which sometimes differ considerably in terms of how they work and their risk profile. The latest edition of the Austrian Financial Market Authority (FMA)’s consumer information series “Let’s talk about money” (Reden wir über Geld) explains the most important differences and provides guidance for an informed investment decision.
One focus of the issue is on stablecoins. Unlike many other crypto-assets, they are intended to remain as stable in value as possible by being tied (pegged) to a reference asset – such as a currency. “Let’s talk about money” explains how stablecoins differ from other crypto-assets, the risks that still exist as well as what can lead to price fluctuations. In addition it also explains the term “crypto winter” – a longer phase of significantly falling prices and low level of trading activity – and the issue of why price forecasting for crypto-assets is generally very difficult to predict.
There is also practical guidance for consumers regarding crypto-assets. Consumers should check whether a stablecoin falls under Europe’s Markets in Crypto-Assets Regulation (MiCAR) regime, and is therefore regulated, whether the assset’s claimed stability is plausible and whether they financially cope with prices potentially falling. Particular caution is urged, if providers promise guaranteed profits or exceptionally high returns.
The current edition of “Let’s talk about money” can be found in English, along with all past editions on the website https://redenwiruebergeld.fma.gv.at/en. “Let’s talk about money” can also be found on Instagram under @redenwiruebergeld. Consumers can also inform themselves about which stablecoins fall under the MiCAR regime. The Digital Euro Association (DEA) has launched its MiCAR Tracker, which is based on the register data published by the European Securities and Markets Authority (ESMA). Consumers can find further information on financial topics in the A-Z of Finance as well as through the FMA Company Database.
Journalists may address further enquiries to
Boris Gröndahl (FMA Media Spokesperson)
Telephone: +43/(1)249/59-6010
Mobile: +43 676 8824 9995
E-Mail: [email protected]