Three EU Watchdogs Warn Over 'High Risks' of Cryptos

in bitcoin •  7 years ago 

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Three European regulators with oversight over securities, banking and pensions issued a combined warning today to EU residents considering investing in cryptocurrencies.

Citing the crypto markets' volatility, lack of regulation and the potential for severe losses, the European Securities and Markets Authority (ESMA), the European Banking Authority (EBA) and the European Insurance and Occupational Pensions Authority (EIOPA) wrote a brief note warning investors of the "high risks of buying and/or holding so-called virtual currencies." The warning reads:

"VCs [virtual currencies] and exchanges where consumers can trade are not regulated under EU law, which means that consumers buying VCs do not benefit from any protection associated with regulated financial services. For example, if a VC exchange goes out of business or consumers have their money stolen because their VC account is subject to a cyber-attack; there is no EU law that would cover their losses."

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EU banks are just worried about their elite status. And they should be!

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