Thursday, December 7, 2023

Securities Regulators Identify Crypto Products as Highly Risky and Speculative

US securities regulators think that investments in cryptocurrencies remain a big threat for the investors this year. They advise investors that cryptocurrency and related products may be Ponzi schemes like frauds.

Crypto Remains a Major Threat for Securities Regulators

NASAA (North American Securities Administrator Association) released its yearly investor threat list on Monday. This nonprofit association was established in 1919. Territorial, provincial and state securities regulators of Mexico, Canada and the US are part of it. The association said that top threats posing risks to investors have been determined after a survey among securities regulators. They identified the biggest problematic financial schemes, practices and products. These regulators identified digital assets and cryptocurrencies as the biggest threat for investors.

Identifying the Investment Threats

The association says that many investors are attracted to these schemes because of the reports of “crypto millionaires”. However, small investors do not have the expertise to assess the risks fully before investing in crypto schemes and products. In the end, the stories of betting big and losing big start appearing. This same trend is expected to continue in 2022.

Warning Issued to Investors

The association warned investors about digital assets that do not meet the requirements of current regulatory framework. Promoters offering such crypto products can fleece the investors. Some or all investments made in these funds may be lost. It said that cryptocurrency and related investment schemes are highly speculative and risky. According to the NASAA President Melanie Senter Lubin, any crypto scheme or product that claims a high return at no risk should be a red flag for the investors.

Cryptured Team
Cryptured Team
The writers team at is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.

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