The New York Attorney General said the cryptocurrency market contains a myriad of risks for investors, from wild price swings to potential losses from hacking or fraud.
Letitia James reminded New Yorkers of the risks of investing in virtual currency in a guidance note released Thursday. She said investors lost hundreds of billions of dollars in crypto investments in the market turmoil last month and said even legitimate virtual currency assets were prone to speculative bubbles and security issues. She added that the market also lacks significant oversight as there are no federally regulated exchanges.
The indications come as stablecoin TerraUSD has crashed in recent weeks, overwhelming investors with billions of dollars in losses. The price of bitcoin has also fallen more than 50% since its peak in November.
New York, the center of traditional finance in the United States, is also an important market for many crypto companies.
“Time and time again, investors lose billions from risky cryptocurrency investments,” Ms. James said. “Too often, cryptocurrency investments create more pain than gain for investors. I urge New Yorkers to be careful about putting their hard-earned money into risky cryptocurrency investments that can generate more anxiety than fortune.
Among the risks associated with the crypto market are the unpredictable underlying value of virtual currencies; higher transaction costs on trading platforms for transfers and withdrawals; and hidden transaction fees. The guidelines also note that there are often conflicts of interest in the crypto market, as many crypto trading platform operators invest in virtual currencies and trade on their own platforms unsupervised.
Thursday’s guidelines are the latest push from the New York Attorney General’s office to regulate the crypto market. The bureau has previously issued alerts, including one in March that urged “extreme caution” in investing in crypto, and reminded industry professionals, such as brokers and traders, of their legal obligations to s register with the Attorney General’s office when doing business. with virtual currencies.
Write to Mengqi Sun at firstname.lastname@example.org
Copyright ©2022 Dow Jones & Company, Inc. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8
We would love to say thanks to the author of this write-up for this awesome material
New York Attorney General Warns Of Crypto Investing Risks
Explore our social media profiles and also other pages related to themhttps://metfabtech.com/related-pages/