The financial regulator Bafin has private investors in mind Risks of investing in crypto assets and investment tips on social media. Enthusiastic reports about Bitcoin, Ether and Co. were circulating there, but there were investments in crypto assets highly speculative and just as risky, the supervisor warned on Monday. There is a risk of total loss of the money invested.
According to their own statements, the supervision has been in place for three to four months increased inquiries from consumers to bitcoin and other crypto assets. “Even if the proportion of private investors in crypto assets is currently still manageable, we have recently been receiving more and more information from consumers about dubious platforms, also from the crypto sector,” said Thorsten Pötzsch, Executive Director of Bafin responsible for securities supervision, of the German Press Agency . “Often the question is whether and how consumers can get back the money they have invested.”
The financial regulator takes a critical view of investment tips on social media such as YouTube, Facebook, Twitter and Instagram. It is true that there is good information there with a serious background. But there were also countless incorrect or only partially correct representations, reported Pötzsch.
According to the findings of the financial supervisory authority, private investors are increasingly relying on tips in social media. In an online survey by the Bafin last year, 20 percent of those surveyed stated that they found information about financial topics on YouTube, Facebook and the like. According to the survey, almost 17 percent had already implemented a financial tip without having previously obtained information from other sources.