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NASAA Expresses Concerns Regarding Crypto Scams

North American Securities Administrators Association or NASAA recently published an international warning against cryptocurrency investment. The NASAA is a joint body of regulators operating out of Canada, Mexico, and the United States. The warning was posted in a new blog post published on the official website of NASAA.

The article claimed that during the last year, a considerable number of new cryptocurrency millionaires were introduced. However, at the same time, the cryptocurrency investment industry was able to home to a great number of scammers and fraudsters who exploit the individuals wanting to delve into cryptocurrency trading. Another big problem cited by NASAA for digital assets is the high volatility.

Joseph Rotunda is the Vice Chairperson for Enforcement Section Committee at NASAA. He added in the NASAA blog that according to the reports compiled by securities regulators in North America, cryptocurrencies are one of the biggest investment threats for consumers thus far. He also claimed that many newcomers bet big and lost bigger with get-rich-quick schemes.

Rotunda specifically warned the investors about the crypto mining pools, unsanctioned crypto trading opportunities, unverified depository and custodial service providers, and securitized tokens that are among the most common scams. He further added that most scams happen with investors willing to put their savings at stake for short-term big return schemes.

In addition to the cryptocurrency exchanges and decentralized platforms, the NASAA blog post highlighted many other cryptocurrency scams like promissory notes. A promissory note is a legal document that bound one person to pay a specified sum of money on demand. On the other hand, there are also social media scams where the threat actors lure their victims posing as influencers.

Many people have also fallen victim to the self-directed retirement account. NASAA also pointed out that the majority of threat actors can get away with these scams due to the lack of a regulatory framework and legislative base. An independent media report revealed that investors lost a whopping $2.8 billion in scams like rug pulls during last year.