Caution in europe on the risks of Bitcoin

Photo: Karen Bleier Agence France-Presse
The bitcoin suffers the competition of a rival, the ” bitcoin cash “, created this summer at the initiative of a minority share of the community of its users.

Paris — The european securities and markets Authority (ESMA) has warned Monday on the risks associated with levees in cryptomonnaies, insisting on the instability of this type of currency, as illustrated in recent days by the iconic bitcoin.

 

During these operations in full swing, so-called ” Initial corner offerings (ICO), a term modeled on the SOPS used in English for the introductions on the stock Exchange), a group creates its own virtual currency and raising funds by selling to investors. “ESMA has observed a rapid growth of the ICO in the world like in Europe, and fears that investors are not aware of the high risk they take,” said the regulator in a press release.

 

ESMA warns european investors that they might be deprived of recourse in case of disputes, because many of the ICO, which operate using the technology fully decentralized ” blockchain “, ” do not fall within the scope of applications of laws and european regulation “. Especially, the controller recalls that, like any virtual currency, the currency created by the enterprise risk to be ” extremely volatile “.

 

The warning of the ESMA is published at a time when the bitcoin virtual currency the most emblematic, is experiencing strong shaking. Monday, it fell to 5605 US$, a decline of almost 30% from a record November 8, to recover at 6425 US$.

 

The bitcoin suffers the competition of a rival, the ” bitcoin cash “, created this summer at the initiative of a minority share of the community of its users.

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