Financial Services Authority warns against crypto currency

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FSA warns consumers against buying crypto currencies, calls them highly risky and speculative products, which pose a high risk of loss.

 

Crypto currencies are not regulated and are traded on unregulated marketplaces. The currency is considered unsuitable for long-term savings for most consumers, the Danish Financial Supervisory Authority states Monday.

They thus agree with the European Financial Supervisory Authorities that issued on the same day a common warning against the high risk associated with buying and owning crypto currencies such as Bitcoin, Ether and Ripple.

The warning also applies to financial institutions that provide exposure to crypto currencies.

FSA indicates that the price of such crypto currencies has been very volitile lately. For example, the price of Bitcoin has risen from about 1,000 euros in January 2017 to a peak of over 16,000 euros in December.

The currency then fell by almost 70 percent – to 5,000 euros early in February 2018. The price has recently increased, and is now trading for about 7,000 euros.

 

© NTB Scanpix / #Norway Today

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