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European Financial Supervisors Warn EU Citizens Against Crypto Investment

Tuesday, February 13th, 2018 | bitcoin updates

Read articles: The three European financial supervisors EBA, EIOPA and ESMA have written to the citizens of the European Union in a written communication. In this letter, the population is warned about the risks involved in buying and trading cryptocurrencies. The warning is another sign of a European regulatory approach. The European Supervisory Authorities (ESA) are institutions responsible for strengthening the regulation and control of European financial markets. They were launched in 2011 in response to the global financial crisis. Components include the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA) and the European Securities and Markets Authority, ESMA). Some of these took over the tasks of national financial supervisory authorities, such as the BaFin. The three authorities addressed a letter to the people of the European Union yesterday. It was about the risks of trading cryptocurrencies. It is argued that cryptocurrencies that are not issued and guaranteed by a central authority are thus not legally considered as a means of payment. The coverage of cryptocurrencies by real equivalents can not be guaranteed either. Due to a lack of EU-wide regulation, there would also be no legally secured investor and consumer protection. Also, the high volatility of Bitcoin, ethers and other cryptocurrencies can not be dismissed, instead risking blistering. In addition to the well-known reservations voiced by the ESAs, however, there are also hints and tips that a potential investor may have in the Buying or holding cryptocurrencies should be considered. For example, the investment product should be discussed in more detail in advance, and precautionary measures should be taken – logical, if not trivial, comments. The warning now raised can be seen as a further step towards general European regulation. For example, the finance ministers and central bankers of Germany and France last week wrote a letter with specific demands for the regulation of cryptocurrencies to the G20 presidency in Argentina. Germany and France have always been considered the engines of European integration and have the power to advance large joint projects.BTC-ECHOAbout Tobias SchmidtTobias Schmidt has been working as an editor on the BTC-ECHO team since August 2017. He completed his studies in Politics and Economics at the University of Münster with a bachelor's degree and also worked as a student assistant during his studies. In addition, he gained professional experience in parliamentary work and strategic communication before moving to the journalistic field. Since 2017 he has dedicated himself to blockchain technology, focusing in particular on the many different applications in politics, business and society. All contributions by Tobias Schmidt

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