April 2020Posted on Apr 1, 2020 in Commissioner's Corner
Tip: Cryptocurrencies are digital assets created by companies or individuals that take the form of a virtual coin or token. Cryptocurrencies are intangible and exist only on the internet. Central banks and other governmental authorities do not insure or control cryptocurrencies.
Before you jump into the crypto craze, be mindful that cryptocurrencies and related financial products may be nothing more than public facing fronts for Ponzi schemes and other frauds. As these products do not fall neatly into the existing federal/state regulatory framework, it may be easier for the promoters of these products to fleece you.
Investing in cryptocurrencies and related financial products should be seen for what it is: extremely risky speculation with a high risk of loss.
|North American Securities Administrators Association – nasaa.org|