BaFin - Germany's financial regulator has warned individual investors about the risks associated with investing in cryptocurrency. They considered this measure especially necessary in light of the current bull market.
The BaFin website today posted a consumer protection message in which the authority was quick to warn those contemplating investing in cryptocurrencies. The statement contains the statements of some European regulators. For example, the European Securities and Markets Authority, and the European Banking Authority. On its own behalf, BaFin added that investors must be aware of the risk of losing 100% of their investments in digital currencies.
While the European Union is still forming the legal framework for cryptocurrencies, the German financial regulator has already created a regulatory framework for this type of assets used in the country.
First of all, all services offering services for the storage of digital currencies undertake to obtain a BaFin license. This rule has been in effect since December 2020. At the same time, one of the oldest German banks, Hauck & Aufhauser, announced that it plans to create its own cryptocurrency fund.
The warnings from regulators have become even more intrusive since the bulls began their reign in the market. In the last couple of months, regulators from the UK, South Africa and Thailand have issued warnings to investors. By the way, the finance minister of the latter even critici
zsed cryptocurrencies and their speculative growth, threatening investors with the loss of all profits.