Swedish Regulator Warns Consumers Over Crypto Investment Product Risks

23/02/2021 by No Comments

Sweden’s Financial Supervisory Authority (FSA) has warned that investments such as bitcoin exchange-traded products (ETPs) may be unsuitable for retail consumers.

  • In an announcement Monday, the regulator said it had carried out a thematic review of the market for financial products with underlying crypto assets and found a “high risk” that consumers would lose money on their investments.
  • FSA Director General Erik Thedéen said such products are unsuitable for most, if not all, retail investors as consumer protections are “inadequate” and crypto assets are “difficult, if not impossible, to value on a credible basis.”
  • Sweden is home to one of the first bitcoin tracker ETPs available on the FSA-regulated exchange NASDAQ/OMX in Stockholm.

Read more: Canada’s First Bitcoin ETF Hits $421.8M AUM in Two Days

Swedish Regulator Warns Consumers Over Crypto Investment Product Risks
Stockholm, Sweden
(Veronika Galkina/Shutterstock)

The Financial Supervisory Authority said investment products such as bitcoin ETPs carry “significant” risk for consumers.