ESMA, EBA and EIOPA Warn Consumers on the Risks of Virtual Currencies

February 12

Consistent with the above post, the European Securities and Markets Authority (ESMA), the European Banking Authority (EBA) and the European Insurance and Occupational Pensions Authority (EIOPA) issued a Warning that warned consumers of the high risks of buying and/or holding cryptocurrencies.  The concern was that an increasing number of consumers buy cryptocurrencies with the expectation that the value will continue to grow, but without being aware of the high risk of losing their money.  The risks they mentioned are (i) extreme volatility and bubble risk, (ii) absence of protection because there is no regulation, (iii) lack of exit options, (iv) lack of price transparency, (v) operational disruptions, and (vi) misleading information.

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David Zaslowsky has a degree in computer science and, before going to Yale Law School, was a computer programmer. He is currently the Chairman of the Litigation Department of the firm’s New York office. His practice focuses on international litigation and arbitration. He has been involved in cases in trial and appellate courts across the United States and before arbitral institutions around the world. Many of David’s cases, including some patent cases, have related to technology. Since 2008, David has been included in Chambers for his expertise in international arbitration.

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