EU regulators warn consumers of the risks associated with cryptocurrency

European regulators are now warning consumers that many encrypted assets are too dangerous and speculative. ESA identifies important steps consumers can take to make informed decisions.

This warning is about increasing consumer activity and interest in encrypted assets and aggressively promoting these assets and related products to the public, including social media.

Regulators are particularly concerned because many consumers are buying 17,000 different cryptographic assets, including bitcoin and ether, which make up 60 percent of the market, without fully realizing the risks.

Consumers need to be aware of the dangers of misleading advertising, including through social media and influential people. Consumers need to be especially careful about promising high or low returns that seem too good to be true, the statement said.

The statement said that consumers should be aware of the high energy consumption to build some cryptographic assets and its impact on the environment.