What consumer protections exist for crypto assets?

There are little to no consumer protections for investing in crypto assets. This depends on jurisdiction but even in countries with advanced economies and regulatory institutions there is a lack of protection for investors because most crypto asset exist outside the regulatory perimeter.

Consumers are typically advised that all of their crypto assets can go to zero with no warning and with no recourse in the cause of fraud of platform risk.

Most crypto exchange are loosely regulated asmoney services business which generally does not provide for any consumer protection even though the entities are acting as bank-like entities on behalf of their customers. There is no deposit insurance on customer funds.

When crypto-exchanges go broke, you'll lose it all

Risk Factors

References

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