A major securities regulator in the United States has labeled cryptocurrency investment as a top investor threat – and one of the five biggest threats for 2020. We are talking about the North American Securities Administrators Association (NASAA) which is the oldest international investor protection organization.
In an official announcement, the regulator listed the top five products or schemes which are likely to defraud investors in the coming year. As you probably know if you read our Bitcoin scams news, cryptocurrency scams have gained a lot of popularity which is why the regulator labeled cryptocurrency investments as a top investor threat.
Released on December 23, this report includes the top five schemes which are likely to trap investors in 2020. The report is fully based on investor complaints, ongoing investigations and current enforcement trends.
Right along the crypto-related investments, the top areas of concern for 2020 include promissory notes, real estate investments, Ponzi schemes and online and social media investment schemes, as the securities regulator NASAA warned.
The president and chief of the New Jersey Bureau of Securities Christopher Gerold also talked about how crypto investments are a top investor threat. He noted that there is no type of investment which can guarantee an investment return. “Anyone who says their investment offer has no risk is lying,” Gerold stated in the cryptonews, noting that investors should be more careful and not fall for promises of guaranteed high returns.
“It is important for investors to understand what they are investing in and who they are investing with. Don’t fall for promises of guaranteed high returns with little to no risk or deals pitched with a false sense of urgency or limited availability.”
In line with the mission of protecting consumers who purchase securities or advice on investments, NASAA has been actively monitoring the activity on cryptocurrency markets. The authority noted that aside from crypto being a top investor threat, there have been over 200 investigations launched on crypto-related investment products and initial coin offerings (ICOs) with its initiative known as “Operation Cryptosweep.”
Previously, the NASAA issued an official warning for Main Street investors against all the risks linked to cryptocurrencies and ICOs.
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