EU regulators : Cryptocurrencies can put you in jeopardy

[zycrypto]

Monday morning news slammed with cautions and alerts for cryptocurrency investors.

European authorities like The European Securities and Markets Authority, or ESMA, the European Banking Authority, or EBA, and the European Insurance and Occupational Pensions Authority have recommended the cryptocurrency investors to stay vigilant as the absence of the regulating rules could make it a vicious merchandise.

“The [virtual currencies] currently available are a digital representation of value that is neither issued nor guaranteed by a central bank or public authority and does not have the legal status of currency or money”, The regulator stated.

He further added by saying that it is high risk as, neither they offer any legal security or EU law on the possession, nor backed by any substantial assets.


Read More: https://zycrypto.com/eu-regulators-cryptocurrencies-can-put-jeopardy/

[hiddenmist]

It was their position long time ago. It is just a recycled news and just creating a FUD but that doesn't work anymore because holders are already FUD resistance now a days. Better to accept the fact that cryptocurrency is the new technology that they have to adopt whether they like it or not.

[Dluretic]

Indeed, there are many irregularities in the current cryptocurrency market, so that means that it may skyrocket and plunge. If you can not accept the risk, it is not advisable to invest in the cryptocurrency, and if you can accept the risk, investing in the cryptocurrency market is a good profit channel.

[sparg]

This is nothing new. EU stated theyr position regarding crypto a good while ago and even you cand find an announcement on theyr site.
Even the banks of Europe promoted theyr message but this doesent mean that they are against. They only advice to have caution in investing in crypto, advice that every investor with experience will give to you.

[heritage35]

This news has been on for a very long time. There is no cause for alarm. It is just their opinion. Nonetheless, so man people still find it easier to operate and use cryptoocurrency. Cryptocurrency has also affected so many lives positively.

[BTCMILLIONAIRE]

The only thing cryptocurrencies can put into jeopardy are banks.

[mpufatzis]

The stock market can put you in jeopardy too, but EU says nothing about it.

[Kemileye]

I think the regulators are doing what they should do but what I see here is that if an investor already understand the risk in cryptocurrency market then will be no need for regulators advice and warning against it because the investor already understand the risk in it.

[sourish]

All regulatory organizations and authorities have the onus of responsibility, hence the necessary cautioning. Also, they are in a position where possible repercussions require necessary comment, and this seems like one prudent response.

[unusualfacts30]

It was their position long time ago. It is just a recycled news and just creating a FUD but that doesn't work anymore because holders are already FUD resistance now a days. Better to accept the fact that cryptocurrency is the new technology that they have to adopt whether they like it or not.

Precisely. It's getting old at this point and people aren't going to dump their bitcoin/alt because of EU or China. Everyone already knows that crypto isn't guaranteed by central bank.

[randomhumster]

I personally think that it is good that government all over the world take a close look at crypto market. The market is already too big to stay away form "legal world". We need laws and regulations to some point. When crypto will become offcially legal a lot more people and financial organizations will be able to participate. And I hope there will be less market manipulations too.

[Yuuto]

They are right. Bitcoin's value or any crypto's value isn't backed by anyone.

People have to start realizing that bitcoin isn't an investment scheme where you can double your money in a certain period of time, nor is it anything that guarantees you profits in the long term. It is simply an online currency without centralized powers.

Now if people buy into this idea, then prices will go up. Otherwise, prices stay the same or go down. Since BTC is traded on the open market, you need to know the risks of trading these. They are much more volatile than even shares.

[BTCMILLIONAIRE]

The stock market can put you in jeopardy too, but EU says nothing about it.

Because banks automatically deduct taxes.