EU Regulators: Cryptocurrencies are High Risk Assets
February 14, 2018
The three European Supervisory Authorities (ESAs) – for securities and markets (ESMA), for banking (EBA) and for insurance and occupational pension (EIOPA) – have released a joint statement thus having voiced their concern over growing number of citizens acquiring cryptocurrency yet staying unaware of all risks they may cause.
“Virtual currencies such as bitcoin, are subject to extreme price volatility and have shown clear signs of a pricing bubble and consumers buying VCs should be aware that there is a high risk that they will lose a large amount, or even all, of the money invested”, the note says.
To date cryptocurrencies and crypto exchanges are not subject to any legal regulation in the EU. Authorities give the investors notice on this fact and add that in case of exchange is under cyber attack investors may lose all their funds as there is no European laws to insure them.
It is remarkable that despite absence of such regulations, the situation may change in the nearest future as the problem is raised more often now in the highest economic quarters of European countries. Thus, Minister of the Economy in France Bruno Le Maire suggested establishing common cryptocurrency legislation on the European Union soil with German Ministry of Finance speaking in support of the idea.