Sweden’s financial regulator Finansinspektionen, or FI, has issued a new warning to retailers about high risk and low consumer protection related to cryptocurrency-related investments.

In an announcement published on Monday, the regulator wrote that while it has already issued a risk warning for Bitcoin (BTC) trading, it is publishing further guidance after completing a broader study of the crypto asset sector.

FI said it has conducted “an objective review of the market for financial instruments with underlying cryptocurrencies.” FI CEO Eric Teddin said:

“Crypto-based products are not suitable for most, if not all, retail customers. The available consumer protection is insufficient and it is difficult, if not impossible, to value cryptographic systems on a reliable basis. ”
Tedeen’s view is composed of the fact that Swedish rules for consumer protection do not provide comprehensive protection for investors against the risk associated with buying products or financial instruments that contain cryptocurrencies as an underlying asset.

The FI warning coincides with a period of marked volatility in the cryptocurrency and derivatives market. Bitcoin has fallen more than 17% in the last 24 hours, and BTC futures positions of 5.64 billion dollars have been liquidated during the same period.

While the Swedish financial authorities’ doubts about the health and effect of cryptocurrency markets are clear, the country’s central bank is pioneering research and development for a centrally issued e-krona that can provide a supplement to cash.

Source: CoinTelegraph

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