The European Union’s financial market regulators, the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA) and the European Securities and Markets Authority (ESMA) issued a joint warning to consumers and investors about the variety and high risks linked to the usage of and investment in crypto assets and virtual currencies. This warning comes in the context of growing consumer activity and interest in crypto-assets and the aggressive promotion of those assets and related products to the public, including through social media as well as by influencers. The European regulators have therefore also started a joint social media information campaign.
The EU institutions highlight in their warning that such crypto assets are unsuitable for most retail investors both as investments as well as means of payment or exchange, as consumers:
- face the very real possibility of losing all their invested money if they buy these assets;
- should be alert to the risks of misleading advertisements, including via social media and influencers; and
- should be particularly wary of promised fast or high returns, especially those that look too good to be true.
The European Supervisory Authorities (ESAs) also warn consumers that they should be aware of the lack of recourse or protection available to them, as crypto-assets and related products and services typically fall outside existing protection under current EU financial service rules.
The warnings of the European regulators as well as further can be found under the following links:
Journalists may address further enquiries to:
Klaus Grubelnik (FMA Media Spokesperson)
+43 (0)676 88249516 or +43 (0)1 249 59 – 6006