American regulators warned about the risks of cryptocurrency investment - Bits Media

United States Securities and Exchange Commission (SEC) Together with five financial regulators, she warned about the risks of investment in crypto acts as part of the international campaign of World Investor Week 2023.

SEC has declared, what, investing money in cryptocurrencies, especially in Unregistered securities, Individual investors are undergoing large risks of loss of funds. The position of the department was supported by the Office for the Regulation of the Financial Industry of the United States (FINRA), US Commodity Futures Trading Commission (CFTC), National Futures Association (NFA), Corporation to protect investors in securities (SIPC) and North American Association of Securities Administrators (nasaa).

A joint statement of regulators indicates, that crypto assets can be too volatile and used for market speculation, And cryptocurrency platforms, Where investors buy, sell or receive lending, can work without a license. It means, that unregistered suppliers of cryptocurrency products and services violate federal laws on securities. therefore, In case of loss of funds, Investors will not be able to count on the return of their assets.

“Fraudsters continue to enjoy the growing popularity of crypto assets in the hope of attracting as many retail investors as possible, And this leads to colossal losses. If you are still ready to risk money in speculative investments, Be prepared for that, that you can completely lose them ", - indicated in the warning of regulators.

In May, European Securities and Markets Directorate (ESMA Guide Calls for Prohibition of PoW Cryptocurrency Mining) also published a warning about the risks of investment in unregulated cryptocurrency projects, Marking, that the law on the regulation of cryptocurrencies in the European Union will soon enter into force (MiCA).