Investing In Crypto Assets: Precautions To Avoid Fraud

Cryptocurrencies seem to be democratizing and becoming more and more accessible to the general public (Photo credit: Fotolia)

Investing in crypto assets appears democratizing but continues to be poorly monitored and many crooks work on the internet. What are the precautionary measures to avoid fraud?

Investing in crypto assets appears democratizing but continues to be poorly monitored and many crooks work on the internet. What are the precautionary measures to avoid fraud?

The Democratization of Bitcoin and Crypto Assets

In 2020, in the context of the health crisis that plunged financial markets and pushed central banks to flood the markets with liquidity, Bitcoin did well, growing + 267% in value. Cryptocurrencies seem to be democratizing and becoming more and more accessible to the general public: PayPal, the online payments giant, has launched a service for buying, selling and paying in cryptocurrency, as well as for professional investors and funds from investments are becoming more and more interested.

Precautions To Avoid Fraud

However, investments in crypto assets continue to be poorly monitored and many crooks work on the internet.

Registration with the AMF

The Pact Act has established a specific regime for monitoring digital asset service providers (PSAN). PSANs are financial intermediaries that offer various services related to investing in crypto assets:

Since December 19, 2020 a PSAN has to be registered with the AMF (Autorité des Marchés Financiers) in order to be able to offer the services of custody or access to crypto assets and the purchase / sale of crypto assets against currencies that are legal tender. This registration allows the AMF to conduct a series of checks to ensure the reliability of the digital asset service provider. You can check that your contact is registered by consulting the AMF whitelist. Any provider who offers either of these two services without being registered is likely to be blacklisted by the AMF.

Investing In Crypto Assets: Precautions To Avoid Fraud
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