The Cyprus financial authority, the CySEC, issued a warning last week on cryptocurrencies. The agency specifically directed consumers to read the European Securities and Markets
Authority’s warning on ICOs.
Additionally, the CySEC described cryptocurrencies as "digital representation" of value that are neither issued nor guaranteed by any central bank or public authority, and that these assets have no legal status of currency within Cyprus:
"They are highly risky, generally not backed by any tangible assets and unregulated under EU law, and do not, therefore, offer any legal protection to consumers.," said the CySEC.
The agency told consumers that cryptocurrencies and ICOs can be very risky and are usually highly speculative, as well as prone to bubbles and extreme volatility. The CySEC also warned retirees and pensioners that cryptocurrency investments are not suitable for retirement planning.
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