US Security regulator: crypto is the Top Threat for 2022
The North American Securities Administrators Association (NASAA) releases an annual list of investor threats. In 2022, they noted that crypto assets are a major threat because of the high level of fraud and lack of regulation.
Why is it so important?
NASAA is the trusted source to which many U.S. investors, banks, and funds refer.
According to the NASAA press release, the threat list is determined by surveying securities regulators across North America. This helps find the most troublesome products, schemes, and practices. For 2022, the top threats are:
- Investments tied to cryptocurrencies and digital assets,
- Fraud offerings related to promissory notes,
- Money scams offered through social media and internet investment offers and,
- Financial schemes connected to Self-Directed Individual Retirement Accounts.
The main reason why crypto assets ranked first among threats is the lack of a regulatory and legal framework governing these activities. Basically, this means that creators of crypto projects bear almost no responsibility for their actions, which facilitates the emergence of various fraud schemes, such as Ponzi schemes.