Texas regulators have included cryptocurrencies in their listing of top threats to investors, according to the latest Texas Investor Guide.

In its 10th anniversary edition of the State Securities Board'due south "Texas Investor Guide: Strategies for Investing Wisely and Avoiding Financial Fraud," the regulator added cryptocurrency to the listing of investments that raise red flags and crave careful scrutiny. The document specifically outlined that cryptocurrencies are extremely volatile and difficult to empathize for a not-professional trader.

The purported threats

Amid the purported threats, the report pointed out investment opportunities in cryptocurrency mining pools and initial coin offerings directed at seniors and retirees, who plain prioritize security over speculation. The certificate farther warned:

"In the riskiest cryptocurrency-related offerings, promoters do non provide audited records or other financial data to back up their claims of extraordinarily high profits. [...] Promoters' claims of 'secure' cryptocurrency-related investments and 'guaranteed' profits should be approached with circumspection: Cryptocurrencies tend to exist extremely volatile and investors may be unable to quickly liquidate products tied to them."

The regulator's communication

The guidance brash potential investors not to contribute to cryptocurrency offerings unless they can determine some basic facts virtually the company and its physical location. Otherwise, it further explained, investors might transfer funds to anonymous third parties.

The regulator outlined the importance of dealing with registered entities and keeping in heed that deceived investors will be left with little or no resource.

Along with cryptocurrencies on the list, the report also cited unregistered individuals, oil and gas offerings, promissory notes

In late December, the Due north American Securities Administrators Association (NASAA) — an international investor protection system — stated that cryptocurrency investment is among the top five investor threats for 2022. The NASAA's report included the acme 5 schemes that are probable to trap investors in 2022, based on investor complaints, ongoing investigations as well every bit current enforcement trends.