The European Banking Authority, European Securities and Markets Authority, and the European Insurance and Occupational Pensions Authority said cryptocurrencies could “mislead” investors.
The watchdogs said information relating to cryptocurrencies in “most cases is incomplete, difficult to understand, does not properly disclose the risks … and may therefore be misleading.
“Virtual currencies such as bitcoin, are subject to extreme price volatility and have shown clear signs of a pricing bubble and consumers buying VCs should be aware that there is a high risk that they will lose a large amount, or even all, of the money invested.”
Valdis Dombrovskis, European Commission Vice President, said last month the EU must prevent cryptocurrencies from becoming “token for unlawful behaviour.”
He said a meeting will take place consisting of key authorities and the private sector in the near future to assess the long-term situation regarding cryptocurrencies.
An European Commission…