London,Business Desk. The European Union’s securities, banking and insurance watchdog said in a joint statement that consumers are at risk of losing all of their money invested in crypto assets and could fall victim to scams . “Consumers face the real possibility of losing all of their invested money if they buy these assets,” three EU regulators said in a statement.
This prompts EU regulators to directly warn consumers about crypto assets, stating that consumers have no protection or recourse for compensation under current EU financial services law. Regulators are very concerned that more consumers are buying 17,000 different crypto assets, including bitcoin and ether, which are not fully aware of the risks, the regulator said. It accounts for 60% of the market.
“Consumers should be alert to the risks of deceptive advertising, including on social media and influencers. Consumers should be especially wary of fast or high returns promised, especially those that are difficult to come true,” the statement said. I think.” Consumers should also be aware that the energy consumption required to create certain cryptoassets is high and has an environmental impact, the statement said.
It is worth noting that apart from this, the Government of India has announced the imposition of tax on crypto. Investors will have to pay a tax of 30 percent on the earnings made from crypto. Finance Minister Nirmala Sitharaman announced this in her budget speech in Parliament on February 1. The government has kept it in the high slab. However, till now there was no tax provision regarding crypto in India.