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State securities regulators in the United States have identified cryptocurrency investments as their number one threat to investors this year. "before jumping into crypto infatuation, keep in mind that cryptocurrencies and associated financial products may be nothing more than public fronts for ponzi schemes and other frauds," one regulator warned.
crypto Is the primary threat to American securities regulators.
The North American Securities Administrators Association (NASAA) issued its "annual list of major threats to investors" on Monday.
Nasaa, established in 1919, is a non-profit association of state, provincial and territorial securities regulators in the United States, Canada and Mexico. The association has 67 members, including securities regulators in the 50 US states, the District of Columbia, Puerto Rico and the US Virgin Islands.
"The key threats to investors were identified through a survey of North American securities regulators to identify the most problematic products, practices or schemes," the association explained. "investments related to cryptocurrencies and digital assets" top the list of threats most often cited by securities regulators, the association noted.
Joseph P. Borg, manager of the Alabama Securities Commission, said:
by far, nasaa’s securities regulators revealed that investments related to cryptocurrencies and digital assets is our top investor threat.
He elaborated: «the stories of «cryptomillionaires» have attracted some investors to try their luck by investing in cryptocurrencies or investments related to cryptocurrencies this year, and with these, many stories of those who gambled great and lost great began to appear, and they will continue to appear by 2022."
The NASAA warned: Digital assets do not fall within the existing regulatory framework for investors, and it may be easier for the promoters of these products to own the public. All investments carry the risk that some or all of the money invested will be lost."
Texas State Securities Division Manager Joseph Rotunda warned:
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.
He continued: "investing in cryptocurrency trading programs, interest in crypto mineral deposits, crypto deposit accounts and securitized tokens should be seen for what they are: extremely risky speculation with a high risk of loss."
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