German investors are warned by BaFin about the risks

Individual investors should be aware of the risks associated with investing in cryptocurrencies, according to BaFin, Germany’s financial regulator. They saw this as particularly important in light of the ongoing bull market.

The BaFin website released a consumer protection message today, in which the regulator warned those considering investing in cryptocurrencies. Some European regulators have made comments, which are included in the document. The European Securities and Markets Authority and the European Banking Authority are two examples. BaFin added on its own behalf that investors should be mindful of the possibility of losing their entire investment in digital currencies.

While the European Union is still establishing a legal structure for cryptocurrencies, the German financial regulator has already established one for these types of properties.

First and foremost, all providers that provide storage for digital currencies must obtain a BaFin license. Since December 2020, this rule has been in force. At the same time, Hauck & Aufhauser, one of Germany’s oldest banks, announced plans to launch its own cryptocurrency fund.

After the bulls took control of the economy, regulators’ alerts have become even more invasive. Investors have been alerted by regulators in the United Kingdom, South Africa, and Thailand in recent months. By the way, the latter’s finance minister has slammed cryptocurrencies and their speculative development, threatening investors with a complete loss of capital.

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