Tuesday, March 2, 2021

Bitcoin: Finansinspektionen warns of cryptocurrencies


Of: Gustaf Tronarp, TT

Published:
Updated:

Bitcoin and other cryptocurrencies are unsuitable investments for most small savers.

This warning is issued by Finansinspektionen after mapping the market.

– They are difficult or impossible to evaluate in a reliable way, says CEO Erik Thedéen.

Both experienced investment foxes and enthusiastic beginners flock to digital money. Bitcoin, the most established cryptocurrency, has risen by over 360 percent in the last six months. Last week, the value of a bitcoin exceeded $ 50,000 for the first time. On Monday morning, the price was up to just over 55,000 dollars, corresponding to about 460,000 kronor.

Warning: Unsuitable for most

The two-way push has been driven by the fact that major players such as the electric car giant Tesla and the card company Mastercard have opened up to accept bitcoin as a means of payment.

But Finansinspektionen, FI, does not agree with the tribute choir. The authority is now issuing a warning for financial instruments with cryptocurrencies as the underlying asset.

– Products based on cryptocurrencies are unsuitable for most consumers, if not all. Consumer protection is insufficient and cryptocurrencies are difficult or impossible to value in a reliable way, says CEO Erik Thedéen in a comment.

Photo: Anna Nildén / Finansinspektionen

Erik Thedéen, Director General of the Swedish Financial Supervisory Authority.

Risks large losses

FI believes that there is a significant risk that small savers who jump on the cryptocurrency bandwagon will lose money.

“This type of product is not covered by the same consumer protection rules that apply to several other types of investments,” the authority writes.

FI also points out that there are problems with the transparency of the market as well as that cryptocurrencies are common for money laundering and terrorist financing purposes.

Foto: Charles Krupa / AP / TT

Bitcoin has risen sharply in value in recent months. Stock Photography.

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