Finanstilsynet warns: You can lose your money

The European Financial Supervisory Authority recently issued a new joint statement reminding consumers of the high risks associated with virtual currency, the so-called cryptocurrency, or financial instruments that are exposed to such currencies.

Finanstilsynet now agrees with this warning, According to a press release.

Consumers are encouraged to be aware of the dangers of misleading advertising, including through social media and so-called influencers.

“Caution must be exercised in all cases if promises of quick and high returns are made, especially if heard Too good to be true“, It said.

It should also be noted that by purchasing or owning virtual currency or financial instruments that are exposed to such currencies, you will not benefit from the guarantees associated with regulated financial services.

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– You could lose your money

Finanstilsynet lists several risks associated with cryptocurrencies:

You may lose your money due to fraud or technical errors.
The value of a currency or financial instrument can change quickly and significantly. The virtual currency market has attracted significant criminal activity. Scammers use spam, computer viruses, fake graphics, and a variety of other methods to deceive consumers.
Virtual currencies or financial instruments exposed to such currencies are largely unregulated – legal frameworks and investor protections are absent.

Encryption feature

Many cryptocurrencies fell sharply with Russia’s invasion of Ukraine, before rising again.

Stig Aleksander Kjos-Mathisen, CEO of the Norwegian Stock Exchange commented to Finansavisen at the beginning of March.

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