BaFin issues consumer warning for crypto investments

Monday 29 March 2021 12:32 CET | News

The German Federal Financial Supervisory Authority (BaFin) has shared the assessment of the European Supervisory Authorities (ESA) pointing out risks in virtual currencies and crypto investments. 

The European Supervisory Authorities (ESAs) has reiterated on 17 March 2021 the risk in virtual currencies and crypto investments, which the BaFin has shared. The European Banking Authority (EBA), the European Supervisory Authority for Insurance and Company Pension Plans (EIOPA), and the European Securities and Markets Authority (ESMA) are taking the current attraction to crypto values ​​as an opportunity to remind small investors of a possible risk of total loss.

BaFin had already warned in January 2021 of the dangers associated with the crypto asset rave. Currently, cryptocurrencies ​​are largely unregulated in the European Union. The legislative proposal for a regulation on markets for cryptocurrencies is not yet incorporated in EU law. 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 cryptocurrencies. However, there are no protections against losses associated with this.

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Keywords: European Payments Council, cryptocurrency, cryptocurrency exchange, crypto asset
Categories: DeFi & Crypto & Web3
Countries: Germany
This article is part of category

DeFi & Crypto & Web3

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