𝗧𝗵𝗲 𝗘𝘂𝗿𝗼𝗽𝗲𝗮𝗻 𝗦𝘂𝗽𝗲𝗿𝘃𝗶𝘀𝗼𝗿𝘆 𝗔𝘂𝘁𝗵𝗼𝗿𝗶𝘁𝗶𝗲𝘀 (𝗘𝗕𝗔, 𝗘𝗦𝗠𝗔 𝗮𝗻𝗱 𝗘𝗜𝗢𝗣𝗔 – 𝘁𝗵𝗲 𝗘𝗦𝗔𝘀) 𝘁𝗼𝗱𝗮𝘆 𝘄𝗮𝗿𝗻 𝗰𝗼𝗻𝘀𝘂𝗺𝗲𝗿𝘀 𝘁𝗵𝗮𝘁 𝗺𝗮𝗻𝘆 𝗰𝗿𝘆𝗽𝘁𝗼-𝗮𝘀𝘀𝗲𝘁𝘀 𝗮𝗿𝗲 𝗵𝗶𝗴𝗵𝗹𝘆 𝗿𝗶𝘀𝗸𝘆 𝗮𝗻𝗱 𝘀𝗽𝗲𝗰𝘂𝗹𝗮𝘁𝗶𝘃𝗲.
The ESAs set out key steps consumers can take to ensure they make informed decisions. This warning comes in the context of growing consumer activity and interest in crypto-assets and the aggressive promotion of those assets and related products to the public, including through social media.
In their warning, the ESAs highlight that these assets are not suited for most retail consumers as an investment or as a means of payment or exchange, as consumers:
- Face the very real possibility of losing all their invested money if they buy these assets;
- Should be alert to the risks of misleading advertisements, including via social media and influencers; and should be particularly wary of promised fast or high returns, especially those that look too good to be true.
The ESAs also warn consumers that they should be aware of the lack of recourse or protection available to them, as crypto-assets and related products and services typically fall outside existing protection under current EU financial services rules.
In relation to the current situation in Ukraine, and with a view to ensuring the proper implementation of the sanctions in place, the ESAs welcome the clarification by the Council of the European Union of the scope of the restrictive measures against Russian and Belarusian entities and individuals as regards crypto-assets.