Dutch financial regulator points out dangers of crypto after Donald Trump's comments

Despite the newly elected President of the United States Donald Trump's positive comments regarding crypto, investing in coins like Bitcoin is still a risk. This was said by Laura van Geest, chair of the board at the Dutch Authority for the Financial Markets (AFM). Crypto has risen in popularity and worth since Donald Trump’s victory in the US presidential elections.

“In the previous period of government, he was skeptical about crypto, and now he has spoken positively about it,” Van Geest said on Thursday. According to her, efforts have been made worldwide to better manage the risks surrounding crypto.

For example, in China, it is completely prohibited to trade in crypto coins, and American regulators, for example, were working to better regulate crypto. "The question is whether that will continue."

The AFM emphasized the risks of investing in crypto coins and stated that these are a different kind of products than investment products that have been under supervision for a longer time. “We think that crypto is a risky, volatile phenomenon. We always tell people: you should only put money in that you can afford to lose.”

The total market value of crypto coins globally has recently risen to more than 3 trillion (3000 billion) dollars. Bitcoin has increased in value by more than 30 percent since the election results were announced in the US and previously exceeded the historic limit of 90,000 dollars.

The chair of the board added that the AFM keeps more distance than usual when it comes to crypto coins. Crypto has "no clear underlying value," such as the value of a company with a share, Van Geest pointed out. The regulator, therefore, does not give an opinion on whether crypto is valued too high or low, for example.