The European Securities and Markets Authority, the European Banking Authority, and the European Insurance and Occupational Pensions Authority jointly issued a statement, cautioning that consumers should face the very real possibility of losing all their invested money if they buy crypto-assets.
Warning against buying cryptocurrencies, the top European regulators called them “highly risky and speculative,” in a notice issued Thursday. Extensive promotion and growing consumer activity in the area were cited as the key reasons behind the notice. It later added:
“The ESAs also warn consumers that they should be aware of the lack of recourse or protection available to them, as crypto-assets and related products and services typically fall outside existing protection under current EU financial services rules.”
The released statement has also called for any queries related to crypto-related sanctions against Russia and Belarus.
EU lawmakers are currently in the process of creating a regulatory framework on cryptocurrencies. The proposed Markets in Crypto Assets or MiCA bill was recently passed by the economic and monetary affairs committee of the European Parliament on Monday.