German financial regulator BaFin wants retail investors to be aware of the risks associated with crypto investments, especially in the current bull market.
In the current Bull-market and the risk associated with Crypto, the Germany financial regulators Bafin sensitizing the investors and of which they have warned cryptocurrency investors of the risk associated with same.
The regulators offered a cautionary tale about crypto involvement in a consumer protection alert on its website on Friday and most especially retail investors.
Espoused by several European regulators, including the European Securities and Markets Authority and the European banking Authority, Bafin echied similar admonitions.
There need to be explanation to retail investors on the risk of having 100% looses from their crypto investments.
German regulators being ahead of European union lawmakers that are still working towards creating an EU-wide set of laws for digital currencies, German reulators already have a legal framework for digital assets.
The only way Crypto custody providers, exchanges and other businesses can operate in Germany is through Bafin licensing them. As at December, 2020 the country has legalized digital securities.
Interestingly, some banks have sought for approval to begin offering Cryppto custody solutions, under what looks like a somewhat clear cut regulatory landscape.
Hauck & Auhauser, a two hundred and eight four year old German bank has stated Plans to create a cryptocurrency fund.
In the Crypto space, there is no protection against loses for retail consumers, despite the Laws according to Bafin and on the premise of the recent bull market, the investment warnings by Crypto are known occurrence among financial regulators.