Friday, January 20, 2023

Secretary of State's Office Advises Mississippians on the Volatility Within Crypto Investment Platforms

JACKSON, Miss – With the recent collapses, bankruptcies, and global settlements of cryptocurrency platforms, the Secretary of State's Office wants to remind Mississippi investors to be informed of the risks of investing in largely unregulated products such as cryptocurrency. Cryptocurrency markets are highly volatile, making them much more risky for most investors looking to meet long-term savings or retirement goals. 

The North American Securities Administrators Association determined that investments tied to cryptocurrencies and digital assets are the top threat to investors in 2022 and 2023. Funds held on cryptocurrency trading platforms do not have the same protections as those held in banks, credits unions, and securities accounts and operate without other regulatory safeguards.

In conjunction with other states' securities regulators, the Secretary of State’s Securities Division is actively researching and investigating companies and business models involving cryptocurrency and the applicability of securities laws the agency is charged with enforcing.

Tips for Investors:

  • Understand what you are investing in. Many digital asset investments are speculative in nature and you should research the company prior to investing.
  • Check the terms and conditions for the account agreement to make sure you understand your rights. This includes determining how easy it is to sell the investment if you want to get your money out.
  • Never invest more than you can afford to lose.

For a list of tools that will help you invest wisely, visit the Secretary of State’s website. To speak with someone in the Securities Division, call (601) 359-1334.