Crypto Tops Investor Threats for US Securities Regulators – Bitcoin News

U.S. state securities regulators said that cryptocurrency investments have been their number one investor concern this year. “Before you jump into the crypto craze, be mindful that cryptocurrencies and related financial products may be nothing more than public facing fronts for Ponzi schemes and other frauds,” one regulator warned.

The Top Threat to US Securities Regulators: Crypto

The North American Securities Administrators Association (NASAA) released its “annual list of top investor threats” Monday.

NASAA is an association of federal, state and territory securities regulators. It was established in 1919. There are currently 67 members of the association. This includes the Securities Regulators in all 50 U.S. state, Puerto Rico, District of Columbia and U.S. Virgin Islands.

“The top threats to investors were determined by surveying North American securities regulators to identify the most problematic products, practices, or schemes,” the association explained. “Investments tied to cryptocurrencies and digital assets” top the list of the threats most often cited by securities regulators, the association noted.

Joseph P. Borg (Director, Alabama Securities Commission) commented:

By far, NASAA’s securities regulators revealed that investments related to cryptocurrencies and digital assets is our top investor threat.

He elaborated: “Stories of ‘crypto millionaires’ attracted some investors to try their hand at investing in cryptocurrencies or crypto-related investments this year, and with them, many stories of those who bet big and lost big began appearing, and they will continue to appear in 2022.”

The NASAA warned: “Digital assets do not fall neatly into the existing investor regulatory framework, and it may be easier for the promoters of these products to fleece the public. All investments carry the risk that some, or all, of the invested funds could be lost.”

Texas State Securities Board Enforcement Division Director Joseph Rotunda cautioned:

Be aware that crypto currencies and financial products can be used as fronts to Ponzi schemes or other frauds.

He continued: “Investments in cryptocurrency trading programs, interests in crypto mining pools, crypto depository accounts and securitized tokens should be seen for what they are: extremely risky speculation with a high risk of loss.”

Are cryptocurrency investors the greatest threat to U.S. Securities regulators? Comment below.

Kevin Helms

Kevin, a student of Austrian Economics and a Bitcoin evangelist since 2011, was one of the first to discover Bitcoin. His main interests are in Bitcoin security, open source systems, network effects, cryptography, and intersections between economics, cryptography, and Cryptography.

Images CreditsShutterstock. Pixabay. Wiki Commons

DisclaimerThis information is provided for educational purposes only. This article is not intended to be a solicitation or offer to sell or buy any product, service, or company. doesn’t offer investment, tax or legal advice. The author and the company are not responsible for any loss or damage caused by the content or use of any goods, services, or information mentioned in the article.

Get more Crypto News at CFX Magazine