{"id":186756,"date":"2021-02-23T15:56:18","date_gmt":"2021-02-23T12:56:18","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/swedish-regulators-warn-consumers-against-crypto-as-markets-tumble\/"},"modified":"2021-02-23T15:56:18","modified_gmt":"2021-02-23T12:56:18","slug":"swedish-regulators-warn-consumers-against-crypto-as-markets-tumble","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/swedish-regulators-warn-consumers-against-crypto-as-markets-tumble\/","title":{"rendered":"# Swedish regulators warn consumers against crypto as markets tumble"},"content":{"rendered":"

“# Swedish regulators warn consumers against crypto as markets tumble <\/strong>”
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Sweden’s financial regulator,\u00a0Finansinspektionen, or FI, has issued a fresh warning to retail traders about the high risks and low consumer protections associated with crypto-related investments.<\/p>\n

In an announcement published on Feb. 22, the regulator wrote that while it had already issued a warning regarding the risks associated with Bitcoin (BTC) trading, it was publishing further advice following its completion of a wider study of the crypto asset sector.<\/p>\n

The FI says it has carried out a \u201cthematic review of the market for financial instruments with underlying crypto-assets.\u201d\u00a0FI Director General<\/a> Erik Thede\u00e9n said:\u00a0<\/p>\n

\u201cProducts based on crypto-assets are unsuitable for most, if not all, retail consumers. The consumer protection available is inadequate, and crypto-assets are difficult, if not impossible, to value on a credible basis.\u201d<\/p><\/blockquote>\n

Thede\u00e9n view is compounded by the fact that consumer protection regulations in Sweden do not comprehensively protect investors from the risks tied to purchases of financial products or instruments that have crypto assets as an underlying asset.\u00a0<\/p>\n

The FI\u2019s warning coincides with a period of marked volatility in the cryptocurrency spot and derivative markets. Bitcoin (BTC) dropped over 17% in value in the last 24 hours, and $5.64 billion worth of BTC futures positions were liquidated in the same time period.<\/p>\n

While the Swedish financial authorities\u2019 skepticism about the health and impact of the cryptocurrency markets is evident, the country\u2019s central bank is pursuing a research and development pilot for a centrally-issued e-krona that could provide a complement to cash.<\/p>\n