NASAA Warns Investors About Cryptocurrencies

NASAA Warns investors regarding the risks associated with cryptocurrencies and Initial Coin Offerings (ICOs).

North American Securities Administrators Association(NASAA) published an announcement for investors, which warned of the danger of the cryptocurrencies, ICO, and other investment products. The head of the North American Association of Securities, Joseph P. Borg, said that investors should understand the risks:

Investors should go beyond headlines and hype to understand the risks associated with investing in cryptocurrencies, as well as futures contracts for cryptocurrency and other financial products in which these virtual currencies are associated with basic investments.

NASAA is the oldest international investor protection organization that unites regional regulators in the US, Mexico, and Canada. As the survey of members of the association showed, 94% believe that there is a "high risk of fraud" associated with cryptocurrencies. Regulators also were unanimous in the opinion that this market needs more regulation to protect investors.

Recent fluctuations in prices and speculation in investments related to cryptocurrencies can easily tempt unsuspecting investors to hurry with investments that may not be fully understandable for them. There is a high level of risk, unsatisfactory track record and high price volatility. In combination with the high risk of fraud, investing in cryptocurrencies is not for the faint-hearted.

The US Securities and Exchange Commission (SEC) immediately approved the NASAA warnings by publishing a statement , which also recalled the risks associated with cryptocurrencies and ICO. In fact, this was the second SEC statement on this topic; the previous one was published on December 11.

Regulators of the SEC and government securities are pursuing violations, but we again warn you: if you lose money, there is a significant risk that our efforts will not lead to the restoration of your investments

- says the SEC statement, which was signed by the head of the regulator Jay Clayton and commissioners Kara Stein and Michael Pivovar.

Recall that earlier the SEC made public proposals for changing the rules that could lead to the official launch of exchange investment funds (ETF) associated with bitcoin at the Chicago Stock Exchange (CBOE).

Information Source: Cointelegraph

Canada Reports Blockchain To Be Amongst Its Highest Paying Industries
A report recently published by the Canadian Digital Chamber of Commerce proves that the money involved in the blockchain industry of the nation is at...
KodakONE Blockchain Beta Test Generated $1 mln in Content Licensing Claims
More than $1 million — this how much in licensing claims KodakONE, a dev of DLT-based image rights platform, has generated. Certified by the American...
UNICEF Funds Six DLT Startups to Solve Global Issues
UNICEF is both crypto- and blockchain friendly. A few months ago the French leg of UNICEF said it was accepting donations in nine types of...
Facebook Has Opened 5 Blockchain-Related Vacancies
More than half a year ago social media titan Facebook set up a blockchain group to explore how to employ this technology to the maximum advantage of...
Seven Southern European Countries Agreed to Promote Blockchain
Seven countries of Southern Europe signed a declaration in which they commit themselves to promote blockchain. These countries are Cyprus, France...
Amazon Embraces Blockchain Despite The Dip on Crypto-Market
Even as crypto-market plunged from nearly $830 billion in January to $121.5 billion this week, the leading e-commerce company sees an opportunity in...
Microsoft Releases Dev Kit to Connect Users to Blockchain
The American technological titan Microsoft has finally introduced its development kit dubbed Azure. Azure functions without a server and is powered...
JPMorgan: Investors Should Keep an Eye on These DLT-Friendly Companies
If you are an investor, it might still be challenging for you to get exposed to DLT, unless, for sure, you are purchasing bitcoin. To ease the life...
Blockchain Engineers Make As Much As AI Specialists
Engineers working in the blockchain domain are as demanded as those who work on artificial intelligence. Such a conclusion can be made from the...
Blockchain Market Could Be $7 bln and Boost Amazon, Microsoft, BofA Says
Novel estimates from one of the most influential investment banks in the world — Bank of America — showcase unalterable ledger spread will be of use...