European Regulators Warn Crypto Holders

Crypto holders from Europe have new reasons to be concerned, as the European Supervisory Authorities consisting of EBA, EESMA and EIOPA – the ESAs, labelled the majority of crypto transactions as ‘highly risky and speculative’. According to the official warning that the EU Authorities posted online, it may easily happen for many crypto holders in Europe to lose all of their crypto assets.

This warning comes just a few days after the European Union voted not to ban PoW cryptocurrencies, a decision that easily could’ve gone the other way. That is because EU officials are almost equally divided on this matter, with those in favour outweighing those against by a feather thin margin.

In fact, the European Parliament committee almost voted in favour of banning crypto on the grounds that the MICA (Markets in Crypto Assets) framework is perfect for funding terrorism or manipulating the market. The European Parliament already voted against provision from the MICA framework, that would consequently see imposing an outright ban on this rather anti-environmental proof-of-work algorithm.

Furthermore, the warning for crypto holders that the EU Authorities published on Thursday specifically mentions environmental concerns as one of the biggest drawbacks of PoW cryptocurrencies, such as Ethereum or Bitcoin for example.

The Growing List Of ‘Issues’

One of the great concerns of the European Supervisory Authorities are the misleading crypto ads that are all over the internet, and that by engaging the services of YouTubers and Instagram influencers, all that crypto operators do are making things worse.

According to the EU regulators, one of the solutions in order to prevent this  is to simply stay away from social network influencers that have a ‘financial incentive to market crypto’.

Additionally, EU authorities believe that a big problem are the increasing number of privacy concerns such as data leaks, operational dangers and hacks, which are definitely on the rise. As a result, the EU warns crypto holders not to trust ads and offers that are too good to be true, i.e. promises of high and unrealistic returns.

However, the biggest concern for EU regulators is that it all stems down to the knowledge and understanding of crypto. And that due to the large number of people that start investing in crypto without the proper education, the number of European citizens that lose money on digital assets is growing by the day.

Considering that the Economic and Monetary Affairs Committee of the European Parliament already approved the controversial crypto regulatory set of rules just a few days ago, all that the crypto holders from Europe can do now is pray for the fate of crypto in the old continent, something that looks more uncertain by the day.