EU and Swedish Financial Supervisory Authority warn of crypto risks

Despite the new crypto regulation MICA regulation, EU authorities and the Swedish Financial Supervisory Authority continue to warn consumers about the risks of crypto. “It is important to be aware of the risks one takes if buying crypto. Think about whether you actually understand the product, and never invest money you can't afford to lose, says Charlotte Fried.

October 9, 2025
crypto
MiCA

Despite the new crypto regulation MICA regulation, EU authorities and the Financial Supervisory Authority continue to warn consumers about the risks of crypto assets. In addition to the fact that the price can fluctuate quickly, you have limited protection if something goes wrong.

Regulating crypto business

The EU crypto regulatory framework MICA regulation regulates activities involving certain crypto assets. Not all crypto assets are covered by the regulations, but even those that do involve huge risks for consumers.
“We see a risk that consumers believe it will be safe to buy crypto with MiCA. But crypto is, and will continue to be, a very risky product, which is why it's important to understand what it entails before choosing to buy crypto, says Charlotte Fried, unit manager of Payment Analysis and Policy at FI.

The EU authorities EBA, Eiopa and Esma are now issuing a joint warning to make consumers aware of the risks of crypto.

The biggest risks according to the European Union and the Financial Supervisory Authority

Here are the biggest risks of buying crypto, according to the warnings:

  • Extreme price movements
    The value of most crypto assets can fall and rise rapidly over short periods of time. You could lose all the money you have invested.
  • Liquidity risk
    It can be difficult to sell your crypto assets quickly, and you may not get the price you want when you try to sell.
  • Misleading information
    Some crypto assets are aggressively marketed with information that is confusing, incomplete, incorrect, or deliberately misleading.
  • Fraud and computer attacks
    There are many scams associated with crypto, and the systems are often vulnerable to computer attacks. Scammers try to scam you for money through fake emails, manipulated links, false promises of big winnings or by pretending to be serious companies.
  • Limited protection
    With the MICA rules, there are certain protections for you who buy crypto, such as the right to information and the ability to complain. But the protection is weaker than for other financial products - for example, you get no compensation if something goes wrong.

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