This year’s biggest investor threat, according to state securities authorities in the United States, is bitcoin investments. One regulator stated that before someone becomes involved in the crypto frenzy, one should keep in mind that cryptocurrencies and associated financial derivatives could be nothing more than public-facing facets for Ponzi schemes as well as other scams. On Monday, the North American Securities Administrators Association (NASAA) published its “annual list of major investor dangers.”
NASAA is a non-profit organisation of securities regulators from the United States, Canada, and Mexico, founded in 1919. It includes 67 members, representing regulatory agencies from all 50 states, Puerto Rico, the District of Columbia, and the US Virgin Islands.
Joseph P. Borg,Director of the Alabama Securities Commission, stated “Stories of ‘crypto millionaires’ enticed some investors this year to show off their skills at making any investment or crypto-related ventures, also with them, several stories of individuals who invested big and lost large began to emerge, and they will keep evolving in 2022.”
“Digital assets may not cleanly fit into the present investor regulatory regime, and it may be simpler for promoters of these goods to defraud the public,” the NASAA cautioned. All investments include the risk that part or all of the capital invested will be lost.”
“Investments in crypto exchange programmes, desires in crypto mining pools, crypto deposit – taking accounts, and securitisation tokens must be seen for what they really are: incredibly risky speculation with a rising risk of loss,” Texas State Securities Board Enforcement Division Director Joseph Rotunda warned.
