ESMA, the European Agency for supervision of securities market, on Monday February 12, issued a notice in which it warned European investors of the risks when buying cryptocurrencies in the absence of legislative protection mechanisms in this area.
Financial regulators of the European Union is concerned about the growing number of citizens who buy cryptocurrency without regard to the risks associated with such operations. The bitcoin and other digital cryptocurrency, has high volatility.
«Consumers who buy such assets have to understand that you can lose a significant amount or even all of the invested funds», — stated in the notice.
Vice-President of the EC for the Euro and social dialogue Valdis Dombrovskis in his Twitter account echoed this caution:
I welcome today’s warning by the European Supervisory Authorities alerting consumers of the risks when buying virtual currencies #ESAs #ESMA #EBA #EIOPA @EBA_News #cryptocurrencies https://t.co/31EKS7egXO pic.twitter.com/i98ps113Hz
— Valdis Dombrovskis (@VDombrovskis) 12 Feb 2018
ESMA, as an independent market regulator, the financial assets of the European Union, is obliged to ensure stability in this sector of the economy.
In January, we have heard the Minister of economy of France Bruno Le Mayor (Bruno Le Maire) that France and Germany will present joint proposals regarding the regulation of cryptocurrencies, at the upcoming summit of the big twenty. The designated Minister will conduct an in depth analysis of the risks associated with the cryptocurrency market and give proposals for its regulation.
Earlier, the head of the ECB Mario Draghi (Mario Draghi) said that the European banks do not pay enough attention to crypto currencies and in particular bitcoin.