U.S. state securities regulators have revealed that cryptocurrency investments are their high investor risk this yr. “Before you jump into the crypto craze, be mindful that cryptocurrencies and related financial products may be nothing more than public facing fronts for Ponzi schemes and other frauds,” one regulator warned.
Crypto Is the Top Threat for US Securities Regulators
The North American Securities Administrators Association (NASAA) launched its “annual list of top investor threats” Monday.
The NASAA, fashioned in 1919, is a nonprofit affiliation of state, provincial, and territorial securities regulators within the U.S., Canada, and Mexico. The affiliation has 67 members, together with the securities regulators in all 50 U.S. states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.
“The top threats to investors were determined by surveying North American securities regulators to identify the most problematic products, practices, or schemes,” the affiliation defined. “Investments tied to cryptocurrencies and digital assets” high the listing of the threats most frequently cited by securities regulators, the affiliation famous.
Alabama Securities Commission Director Joseph P. Borg commented:
By far, NASAA’s securities regulators revealed that investments associated to cryptocurrencies and digital belongings is our high investor risk.
He elaborated: “Stories of ‘crypto millionaires’ attracted some investors to try their hand at investing in cryptocurrencies or crypto-related investments this year, and with them, many stories of those who bet big and lost big began appearing, and they will continue to appear in 2022.”
The NASAA warned: “Digital assets do not fall neatly into the existing investor regulatory framework, and it may be easier for the promoters of these products to fleece the public. All investments carry the risk that some, or all, of the invested funds could be lost.”
Texas State Securities Board Enforcement Division Director Joseph Rotunda cautioned:
Before you leap into the crypto craze, be conscious that cryptocurrencies and associated monetary merchandise could also be nothing greater than public going through fronts for Ponzi schemes and different frauds.
He continued: “Investments in cryptocurrency trading programs, interests in crypto mining pools, crypto depository accounts and securitized tokens should be seen for what they are: extremely risky speculation with a high risk of loss.”
What do you consider cryptocurrency investments being the highest investor risk for U.S. securities regulators? Let us know within the feedback part beneath.
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