Share this article
EU Regulators Warn Consumers That Crypto Assets Are 'Highly Risky'
Consumers must face the "very real possibility" of losing all their money with crypto, the watchdogs say.
Updated May 11, 2023, 5:01 p.m. Published Mar 17, 2022, 12:02 p.m.
Make us preferred on Google
Investors must face the possibility of losing all their money in crypto assets, a group of top European Union (EU) financial regulators warned consumers on Thursday.
- The regulators cautioned that crypto assets are "highly risky" and measures that don't exist in the EU now are needed to protect consumers.
- The message was published by the European Supervisory Authorities (ESAs), which is made up of the European Banking Authority (EBA), European Securities and Markets Authority (ESMA) and European Insurance and Occupational Pensions Authority (EIOPA).
- The group said that crypto investors must "face the very real possibility of losing all their invested money if they buy these assets," adding that investors are privy to misleading advertisements, including those on social media and from influencers. It also warned that crypto investors "should be particularly wary of promised fast or high returns, especially those that look too good to be true."
- This warning is based on previous similar messages from EU regulators, like the founding regulations of the ESAs, a joint-ESA warning from 2018, as well as a statement issued in March 2021.
- "The ESAs also warn consumers that they should be aware of the lack of recourse or protection available to them," the message read, adding that the proposed regulations for crypto in the EU is still moving through the union's legislative process.
- The proposed Markets in Crypto Assets (MiCA) regulatory package for governing digital assets passed through a parliamentary committee vote on Monday and is now moving on to the next stage of negotiations between EU governments before being eventually ratified.
Read more: UK FCA Orders Operators to Shut Down Crypto ATMs
STORY CONTINUES BELOW
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Ukraine banned Polymarket and there’s no legal way for it to come back
Polymarket and similar platforms are considered unlicensed gambling operators, leading to blocked access.
What to know:
- Ukraine has no legal framework for Web3 prediction markets, and current legislation provides no recognition for such platforms.
- Polymarket and similar platforms are considered unlicensed gambling operators, leading to blocked access.
- Legal changes are unlikely in the near future, as Parliamentary revisions to gambling definitions are extremely improbable during wartime, leaving prediction markets in a legal deadlock.
Top Stories
