BaFin Warns the Public of Social Posts on Crypto Assets

The German Federal Financial Supervisory Authority BaFin has issued a warning on social posts on crypto assets.

BaFin said that crypto assets like Bitcoin and Ether are complicated and very speculative in nature financial products, associated with high risks. Investors can lose their entire investment capital with them.

In addition, BaFin stressed that many of the investment tips circulating on social media about crypto assets and other financial products are unreliable. They may even be false, misleading, or fictitious.

"Digital, lucrative and trendy: this is the image that crypto assets now have among private investors. However, they should not be blinded by promises of high returns and fantastic-sounding investment tips about crypto assets. Caution is especially advised when it comes to recommendations in social media,"BaFin stated.

BaFin often issues warnings regarding crypto companies. The regulator warned that Tether Global, operator of the website tether-global.de, is not an authorized firm.