Germany’s Federal Financial Supervisory Authority (BaFin) today warned the pubic about crypto posts on social media.
BaFin reminded that crypto assets like Bitcoin and Ether are complicated and very speculative in nature financial products, associated with high risks. Investors can lose their entire investment capital with them, the German markets regulator warned.
Moreover, BaFin highlighted that there are many investment tips circulating on social media about crypto stocks and other financial products which are not reliable. They may even be false, misleading or fictitious.
BaFin stated in the official warning:
Digital, lucrative and trendy: this is the image that crypto assets now have among private investors. However, they should not be blinded by promises of high returns and fantastic-sounding investment tips about crypto assets. Caution is especially advised when it comes to recommendations in social media.
In December last year, BaFin announced its investigation in trading platform coinstrades.com as the website had not been granted authorisation to conduct banking business or provide financial services.
