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EU raises concern: Watch out for cryptocurrency fraud! You have no legal protection

2022-03-18 20:06:43Biznes SHKRUAR NGA REDAKSIA VOX

EU raises concern: Watch out for cryptocurrency fraud! You have no legal

The European Commission has warned that consumers risk losing all their money invested in crypto-securities and could fall prey to fraud.

"Consumers face the very real possibility of losing all their invested money if they buy these assets," three EU financial oversight authorities said in a joint statement.

The statement adds to doses of concerns raised to consumers about crypto-essays by EU authorities, stressing that consumers have no protection or recourse for compensation under current EU legislation.

Regulators are increasingly concerned that more consumers are buying various crypto-cons, including Bitcoin and Ether, which make up 60 percent of the market, without being fully aware of the risks, regulators said.

"Consumers should be vigilant of the risks and be deceived, including through social media and influencers. Consumers should be particularly wary of the rapid, or high profits promised, especially those who seem too good to be true," the statement says.

Consumers should also be aware that energy consumption for the production of certain crypto-estates is high and the environmental impact this has is great, the statement says.


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