Investments related to cryptocurrencies and digital assets are “by far” the biggest threat to investors, according to new data from the North American Securities Administrators Association (NASAA). The annual survey by North American securities regulators urges investors to exercise caution before buying popular, unregulated and volatile investment products, especially those involving cryptocurrencies and digital assets.
The report also stated that digital assets “do not comply with existing investor regulatory frameworks,” so it may be easier for promoters of these investment products to “deceive the public.” Fraudsters have made a record $14 billion in cryptocurrencies in 2021, thanks in large part to the rise of decentralized finance (DeFi) platforms, according to blockchain analytics firm Chainalysis.