Monday’s release by the North American Securities Administrators Association was titled “Annual List of Top Investor Threats”.
The NASAA was founded in 1919 and is a non-profit association of state, territorial, and provincial securities regulators in the U.S. and Canada. There are 67 members to the association, which includes securities regulators from all 50 U.S. States, Puerto Rico, the District of Columbia and the U.S. Virgin Islands.
The association stated that the top threats to investors were identified by surveying North American securities regulators in order to identify the most dangerous products, practices or schemes. The association stated that the top threat list for securities regulators is dominated by investments in cryptocurrencies and digital assets.
Joseph P. Borg, Director of the Alabama Securities Commission, commented:
NASAA’s Securities Regulators have shown that investments in cryptocurrencies and digital assets are our greatest investor threat.
He explained that stories of crypto millionaires attracted investors to invest in crypto-related investments or cryptocurrencies this year. With them, many stories about people who lost big on their investments and bet big started appearing. These stories will continue to emerge in 2022.
NASAA stated that digital assets are not covered by the existing investor regulatory framework. It may also be easier for promoters to con the public. Every investment carries the risk of losing some or all of the invested funds.
Texas State Securities Board Enforcement Division Director Joseph Rotunda cautioned:
Be aware that crypto currencies and financial products can be used as fronts to Ponzi schemes or other frauds.
He said, “Investments in cryptocurrency trading platforms, interests in crypto miners, crypto depository account and securitized tokens should be viewed as what they really are: highly risky speculation with high loss potential.”