There were several at once European regulators, including the European Securities and Markets Authority, European Insurance and Occupational Pensions Authority, that made a statement about risks connected with investments in cryptocurrencies, according to news reports. They believe that these coins appear to be a classical sample of a speculative bubble and are improper for investment.
This message was delivered under the joint statement released under the EC request. The European regulators have been the last ones to express concerns about investment safety in cryptocurrency market, given the recent collapse of digital coin price on tougher trading rules in China, South Korea, and India.
According to the EU authorities, the virtual coins are subject to heavy volatility and high risks, so investors should be ready to lose most or even all their funds.
This statement can indicate that Europe is also considering ways to regulate cryptocurrency market, in particular amid the recent reports about possible use of digital coins for money laundering and terrorism funding.