The European Securities and Markets Authority published a report on the risks, trends and weaknesses in financial markets on March 17. Standing above cryptocurrencies such as Bitcoin, ESMA stated that “crypto assets that break a price record and have not yet been regulated pose a risk to investors”.
ESMA, an institution of the European Union, was established to operate securities markets in a transparent, efficient and functional manner. ESMA works to protect investor rights and ensure financial stability.
“You may lose all your money”
ESMA explained that cryptocurrencies are “risky and speculative assets” and investors should be careful. It was stated that those who buy and sell crypto money “can lose all their money”. Treasury and Finance Minister Lütfi Elvan said yesterday, “We have serious concerns about cryptocurrencies. There is anxiety all over the world. ” said.
The European Commission proposed a law to regulate digital assets in September 2020. The Securities and Markets Authority emphasized that this has not yet been implemented, recalling that most crypto assets and trading platforms are “unregulated.”
Why did cryptocurrency prices rise?
Bitcoin, which went below $ 4,000 in March 2020, broke a record this year, reaching $ 61,788. The EU’s financial regulator stated that the rise in cryptocurrency prices can be explained by the “entry of companies like PayPal into the cryptocurrency industry and the interest shown in DeFi.”
It was stated that another thing that directs investors to crypto currencies is the monetary policies prepared against Covid-19.