The U.S. state securities regulator has revealed that cryptocurrency investments are their biggest investor threat this year. “Before you get into the crypto craze, be aware that cryptocurrencies and related financial products may be little more than the public face of Ponzi schemes and other fraudulent practices,” one regulator warned.
Crypto Is the Biggest Threat to U.S. Securities Regulators
The North American Securities Administrators Association (NASAA) released its “Annual Investor Threats List” on Monday.
Founded in 1919, NASAA is a not-for-profit association of state, provincial, and territorial securities regulators in the United States, Canada, and Mexico. The association has 67 members, including securities regulators in all 50 U.S. states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands.
“The greatest threats to investors are identified by investigating North American securities regulators to identify the most problematic products, practices or programs,” the association explained. “Investments related to cryptocurrencies and digital assets,” the association noted. is one of the most frequently cited threats by securities regulators.
Alabama Securities Commission Director Joseph Borg commented:
NASAA’s securities regulator has revealed that investments related to cryptocurrencies and digital assets are our biggest investor threat to date.
He elaborated: “The ‘crypto millionaire’ story has attracted some investors this year to try and invest in cryptocurrencies or crypto-related investments, and with them, a lot of big-and-lost stories started and will continue to be. Comes out in 2022.”
NASAA warned: “Digital assets do not fully fall within existing investor regulatory frameworks, and promoters of these products may more easily deceive the public. All investments carry the risk of losing some or all of the funds invested.”
Joseph Rotonda, director of the enforcement division of the Texas Securities Commission, warned:
Before you get into the crypto craze, be aware that cryptocurrencies and related financial products may be little more than the public face of Ponzi schemes and other fraudulent practices.
He continued: “Investments in cryptocurrency trading schemes, interest in cryptocurrency mining pools, cryptocurrency deposit accounts and securitized tokens should be seen as they are: extremely risky speculation with high risk of loss.”
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