European supervisory authorities warn citizens against crypto-investment

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the three European financial supervisory authority EBA, EIOPA and ESMA have in a written communication to the citizens of the European Union used. In this letter the population will be warned of the risks, the buying of and trade with Kryptowährungen to bring. The warning is a further sign of a European regulatory approach.

The European supervisory authorities (English European supervisory authorities, ESA) are institutions which are responsible for a greater regulation and control of the European financial markets. You were called in response to the global financial crisis in the life of 2011. Components are the European supervisory authority for the insurance and occupational pensions authority (English European insurance and occupational pensions authority, the European banking authority English European banking authority (EBA), EIOPA) and the European Securities and markets authority (English European Securities and markets authority, ESMA). This partly took over the tasks of national financial regulators, such as the BaFin.

The three authorities turned yesterday in a joint letter to the population of the European Union. It dealt with the risks of action with Kryptowährungen. It is stated that Kryptowährungen, which are issued and guaranteed by a central authority, thus also legally are not considered as cash. The cover of Kryptowährungen by real equivalents can not also be assured. Due to a lack of EU-wide regulation there would be no legally investor and consumer protection. Also the high volatility of Bitcoin, ether and other Kryptowährungen cannot be assigned by hand, instead threaten the risk of a blistering.

In addition to the well-known reserved comment on the ESAs, but also hints and tips provided, a potential investor should take into account when buying or holding of Kryptowährungen. So to – set itself apart for example in advance more closely with the investment product and arrangements for safe keeping logical, if not trivial comments.

Now expressed warning can be regarded as a further step in the direction of a general European regulation. So the Finance Ministers and Central Bank Governors of Germany and France had in the last week of a write formulated with concrete demands to the regulation of Kryptowährungen to the G20 Presidency in Argentina. Germany and France are traditionally considered the motors of European integration and have the power to promote large collaborative projects.

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