Europe’s top markets regulator warned investors that they’re exposed to “significant risks” from the rapid rise in Bitcoin and other cryptocurrencies.
The Paris-based European Securities and Markets Authority used its twice-yearly risk report on Wednesday to caution that “crypto-assets are highly risky and speculative” and that “consumers must be alert to the high risks of buying and/or holding these instruments, including the possibility of losing all their money.”
The majority of crypto assets are unregulated in the European Union, and authorities are considering new legislation to oversee the markets.
Bitcoin has soared about 900% over the past year to trade around $55,000 on Wednesday, as retail investors piled into online crypto trading during the pandemic.