EU Regulators warn people and say Cryptocurrencies are Highly Risky to Invest

On Monday, three European Union (EU) regulators warned and told that Cryptocurrencies are “highly risky” assets and are not the place to invest.

The European Supervisory Authorities (ESAs) for securities, banking and insurance and pensions told in a joint statement that they were worried about the increasing number of people buying cryptocurrencies without even knowing the risks associated with it.

The regulators told:

“The ESAs warn consumers that VCs (virtual currencies) are highly risky and unregulated products and are unsuitable as investment, savings or retirement planning products.”

The group of regulators told that cryptocurrencies such as bitcoin are volatile and show “clear signs of a pricing bubble.” They also mentioned that people who invest in them should be conscious of the high risk that they could “lose a large amount, or even all, of the money, invested.”

Since Cryptocurrency and Exchanges are not regulated under EU law, the regulators warned that cryptocurrency investors are not protected in the event of an exchange going out of business or a cyber-attack. Last month, cryptocurrency lending and exchange firm Bitconnect announced that it was shutting down its platform after it received cease-and-desist letters from securities divisions in Texas and North Carolina.

The EU joins a number of government authorities in order to raise concern over cryptocurrencies.