BaFin Warns against ‘Highly Risky’ Crypto Investments
- Many European regulators are warning small investors about the risks of cryptos.
The regulators are becoming wary of the soaring crypto prices and increasing demand for digital currencies. Germany’s Federal Financial Supervisory Authority, popularly known as BaFin, issued a fresh consumer warning against cryptocurrencies.
“Despite recent price records, virtual currencies such as Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term and other crypto values are highly risky and speculative investments,” the regulator warned.
BaFin’s warning came days after the European Supervisory Authorities (ESA) cautioned investors about the risks in crypto investments. Additionally, other European regulators are raising alarms to caution small investors of potential risks of crypto.
“You shouldn't be blinded by the recent price increases of well-known cryptocurrencies such as Bitcoin, Ether, XRP, Bitcoin Cash and Litecoin,” the regulator then noted with an additional warning on crypto derivatives.
No Protection for Losses
However, Germany is one of the few countries with a straight-forward stance on cryptocurrencies. The financial market regulator sees cryptocurrencies as financial instruments and mandated the licensing of all crypto custodian businesses operating in the country.
Despite the regulations, the market watchdog clarified that any losses incurred in crypto are not protected.
“Currently, crypto values are largely unregulated in the European Union,” BaFin added. “In Germany, companies that want to operate the crypto custody business require a permit from BaFin. In addition, companies need permission from BaFin for activities that involve banking or financial services and that relate to crypto values due to the expansion of the term financial instruments to include crypto values.”
“However, this does not provide any protection against losses.”
The regulators are becoming wary of the soaring crypto prices and increasing demand for digital currencies. Germany’s Federal Financial Supervisory Authority, popularly known as BaFin, issued a fresh consumer warning against cryptocurrencies.
“Despite recent price records, virtual currencies such as Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term and other crypto values are highly risky and speculative investments,” the regulator warned.
BaFin’s warning came days after the European Supervisory Authorities (ESA) cautioned investors about the risks in crypto investments. Additionally, other European regulators are raising alarms to caution small investors of potential risks of crypto.
“You shouldn't be blinded by the recent price increases of well-known cryptocurrencies such as Bitcoin, Ether, XRP, Bitcoin Cash and Litecoin,” the regulator then noted with an additional warning on crypto derivatives.
No Protection for Losses
However, Germany is one of the few countries with a straight-forward stance on cryptocurrencies. The financial market regulator sees cryptocurrencies as financial instruments and mandated the licensing of all crypto custodian businesses operating in the country.
Despite the regulations, the market watchdog clarified that any losses incurred in crypto are not protected.
“Currently, crypto values are largely unregulated in the European Union,” BaFin added. “In Germany, companies that want to operate the crypto custody business require a permit from BaFin. In addition, companies need permission from BaFin for activities that involve banking or financial services and that relate to crypto values due to the expansion of the term financial instruments to include crypto values.”
“However, this does not provide any protection against losses.”