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CNB Warns Against Investing in Virtual Tokens

CNB Warns Against Investing in Virtual Tokens

Tokens are digital assets that use established blockchain networks. These can be codes, access keys, or digital artwork. It is typical for tokens to function as currency in a particular application they belong to.

“For example, if the person behind the specific business model is unable to meet their obligations or stops working, the legislation does not provide any special protections that would increase the likelihood of an investor recovering at least part of their investment,” CNB said on its website. on the Internet.

The central bank mentioned XIXOIO, which offers investment in virtual tokens. According to CNB, people can get the wrong impression from a presentation that a company’s business model and business have been approved by the bank or at least partially regulated.

The Ministry of Finance also warned

At the end of November, the Ministry of Finance (MF) warned of the high risk of investing in tokens. “If you are buying investment tokens, you should not only make decisions based on attractive returns, but also carefully consider all risks. Including the fact that you could lose a large part of your investment or even all the money invested,” the resort said.

In response to its own website, XIXOIO itself stated that it had agreed with CNB and Ministry of Finance statements about the risk of unregulated tokens and crypto assets. At the same time, she said that digital crypto assets are in great demand, especially at a time of high inflation.

The central bank advised people to carefully consider their intention to invest through unregulated persons and to follow general rules and principles. The authorization of persons to provide regulated financial services in the Czech Republic can be checked In the Lists of Controlled and Registered Entities It was posted on the CNB website.