A financial watchdog in Hong Kong has warned about the risks of online platforms for cryptocurrency.
The Securities and Futures Commission (SFC) has sounded a note of caution about the potential risks associated with cryptocurrencies and other digital asset deposits.
The SFC said in a statement: “Investors are urged to be wary of the potential high risks [associated with] virtual asset arrangements.”
The watchdog subsequently explained the dangers posed to investors.
It said: “Whilst some VA [virtual asset] Arrangements are commonly labelled or marketed as ‘deposits’ or ‘savings’ products, they are not regulated and are not the same as bank deposits. Investors are not afforded with any form of protection.
“If they cannot fully understand them and bear the potential significant or total losses, they should not make an investment.”
In May, meanwhile, Elon Musk sent the value of Bitcoin into a spiral with a one-word tweet.
The billionaire businessman invested in the cryptocurrency through his Tesla firm, but he undermined the value of the stock at the time by appearing to suggest he could be about to sell his shareholding.
The fall in value occurred after Elon responded to a tweet that read: “Bitcoiners are going to slap themselves next quarter when they find out Tesla dumped the rest of their #Bitcoin holdings. With the amount of hate @elonmusk is getting, I wouldn’t blame him… (sic)”
In response, the tech entrepreneur simply said: “Indeed.”