North American Securities Regulators: Cryptocurrency scams are the biggest threat to investors right now.

According to a morning report of Jan. 12, the Beijing Times, according to new data from the North American Securities Administration Association (NASAA), investing in cryptocurrencies and digital assets is "far from over."

“A story of a cryptocurrency millionaire this year that has caused some traders to try out crypto or crypto related investments, and as it happens, a lot of people are betting big and losing big,” he said. Alabama Securities Commission President and CEO Joseph P. Borg, COO, Co-Chair.

According to the annual North American Security Management Survey, investors should be careful before purchasing any popular, unregulated, unprofitable investment, especially affiliated with cryptocurrencies and digital assets.

"It's important that investors understand what they're investing and who they're investing with," said Maryland Mailer, securities commissioner, president of the North American Association of Stock Managers. Melanie Senter Lubin says:

“Education and information are the best protection for traders against fraud,” said Lubin.

The report also found that it would be easier for the sponsors of these investments to "annoy the public" because digital devices "do not follow the rules governing companies that already exist."

Joseph Rotunda, Deputy Chairman of the Legislative Council, said: “Before you jump into the cryptocurrency industry, keep in mind that cryptocurrencies and other financial instruments can be Ponzi scams and scams. 'other deceptions.

Rotunda added that investments in the cryptocurrency market, interest in cryptocurrency mining pools, cryptocurrency deposits and security tokens should identify "high risk factors and losses of risk ".

According to blockchain analytics firm Chainalysis, crooks will log $ 14 billion in cryptocurrency data by 2021.

DeFi is a rapidly growing area of ​​the crypto industry that aims to decouple intermediaries such as banks through the financial industry has traditionally included lending using blockchain technology.

The drop in cryptocurrency crime rose 79% last year due to an increase in theft and fraud.

Fraud is the main culprit in cryptocurrency crime in 2021, followed by hacking. Usually this is caused by the cryptocurrency hack. Chainalysis discovered that DeFi invests in most frauds and thefts.

The North American Securities Administrators Association notes that most fraudulent threats against investors today involve personal funds that are not subject to federal registration rules. US states also have laws in place to protect customers associated with these private companies.

“Unlisted private equity is often a risky investment and does not offer the same protection to investors as private equity sold on the open market,” Bogle said.

After all, state security officials say it all sounds too good, it's not true.

For example, some DeFi platforms offer customers good returns such as savings and loans with high interest rates.

Scammers often attract new investors by promising them safe, profitable and guaranteed returns within a short period of time. "Sometimes it is not measured in months or years, but in hours or days." North American Securities These promises are a red flag for fraud. noted.

Counterfeiting related to contracts, online fraud and advertising, and financial schemes involving personal pensions pose a threat to retailers.