The North American Securities Administrators Association (NASAA) is out with a fresh list of investor threats in 2020. Most notably, cryptocurrency investment has made it onto the “top five investor threat” list for the upcoming year.

The NASAA lists crypto as a top investor threat in 2020

To preface, the North American Securities Administrators Association is the oldest investor protection organization in the world. As such, its recommendations carry significant weight in the international investor field.

Moreover, the NASAA just released the financial schemes or products most likely to, in the NASAA’s eyes, defraud investors in 2020. This list, which is built on surveys with local securities regulators in the US, Canada and Mexico, includes cryptocurrency investments.

Furthermore, the list also draws information and inspiration from currently ongoing investigations, financial enforcement trends and investor complaints. As such, it is not entirely unsurprising that cryptocurrency investments have made it onto the NASAA’s “big five” list.

Rather, many traditional security regulators have consistently shown an aversion to cryptocurrencies. Additionally, the areas rapid growth has led to issues with fraudulent ICOs and other dubious projects, which have become subject to investigations.

Nevertheless, cryptocurrency investments are not the only type of investment the NASAA warns from in 2020. It also lists real estate investments as a risky undertaking in 2020.

Additionally, the list also includes online and social media investment schemes, promissory notes, and Ponzi schemes.

NASAA president says no investments are risk-free

According to the NASAA’s president – and the chief of the New Jersey Bureau of Securities – Christopher Gerold, no investments at all can actually guarantee returns. As such, anyone who says their investment offer is “risk free” is lying, according to Gerold.

This means that it is of paramount importance for any investors to understand what they are investing in. Rather than merely look at fantastic statements of quick and easy returns, investors should seek to become knowledgeable about their investments.

“It is important for investors to understand what they are investing in and who they are investing with. Don’t fall for promises of guaranteed high returns with little to no risk or deals pitched with a false sense of urgency or limited availability.”

As such, the NASAA’s reasoning behind listing cryptocurrencies becomes more clear. Nevertheless, including the entire cryptocurrency sector as a “top risk” will likely face criticism from cryptocurrency supporters.

This blanket statement would, therefore, rather seem to reflect the fact that the area carries substantial risk – not just “threats”.