SEC and Financial Regulators Issue Crypto Investment Cautions for World Investor Week
The U.S. Securities and Exchange Commission (SEC) and other prominent financial regulators have issued a series of warnings during this year’s World Investor Week, emphasizing the risks associated with investing in cryptocurrency assets.
As part of this global awareness campaign, they caution that investing in crypto assets, including crypto asset securities, carries significant potential for individual investors to incur losses. The bulletin, a collaborative effort involving various regulatory bodies, highlights the exceptional volatility and speculative nature of crypto investments. It underscores the lack of important protections on crypto platforms and the potential non-compliance with applicable laws, including federal securities laws, by entities offering crypto asset investments or services.
The regulators remind investors of the risks, which include unregistered offerings, the absence of Securities Investor Protection Corporation (SIPC) protection, and the prevalence of fraud in the crypto asset space. The regulators advise thorough research and due diligence for individuals considering crypto asset-related investments, stressing the importance of understanding the investment and recognizing warning signs of potential scams.
Clever Robot News Desk 4th October 2023
