American Securities Body NASAA says crypto scams are the top threat to investors in 2022
According to a survey was done by U.S. state securities regulators North American Securities Administrators Association (NASAA) investments done to cryptocurrencies and digital assets hold a top threat to investors in the market in 2022. On Monday, the regulators released its cryptocurrency investments list of top investor threats this year.
The American securities regulators did this annual survey to identify the most problematic products, practices, or schemes. The association asks investors to be careful regarding false schemes and other frauds before paying for popular and volatile unregulated investments including cryptocurrency and digital assets. As per new data from NASAA these investments are a top threat to investors “by far,”. Enforcement Section Committee Co-Chair Joseph P. Borg, Alabama Securities Commission Director said “Stories of ‘crypto millionaires’ attracted some investors to try their hand at investing in cryptocurrencies or crypto-related investments this year, and with them, many stories of those who bet big and lost big began appearing, and they will continue to appear in 2022,”. As the market experiences, greater adoption of crypto scams can lead to a devastating situation.
The NASAA explained that Digital assets don’t properly come under the existing investor regulatory framework which makes it easier for the promoters of this product to cheat the public. There is some sort of risk involved in all investments and part of the investment could get lost.
Texas State Securities Board Enforcement Division Director Joseph Rotunda made people aware referring crypto industry as extremely risky speculation with a high risk of loss. He urges people to be aware regarding investment in cryptocurrency through various trading programs, made alerts against crypto mining pools and crypto depository accounts, and securitized tokens.
in 1919, a non-profit association of securities regulators in the U.S Canada, and Mexico was formed. It comprises of 67 members along with securities regulators in all 50 U.S. states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.
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