Beware of a crypto disaster

Mauricio Burgos Navarrete Director of Audit and Engineering in Management Control, Autonomous University

Mauricio Burgos Navarrete

The frenzy to participate in investment platforms linked to cryptocurrencies has spread across the globe. It is no longer a matter of observing only bitcoin, we are contemplating the existence and evolution of at least 8,400 cryptocurrencies. Fueled by the idea of ​​obtaining high returns, the above becomes a powerful source of attention. However, not all that glitters is gold and we must be cautious, particularly when we are committing our savings, for example, accumulated 10% withdrawals.

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In this sense, we must take note of the call for attention made by the Commission for the Financial Market (CMF) regarding operations in Omegapro, Binance and Swedencap, arguing that they are not registered, nor are they subject to their control. But be careful, this is not just a whim of the CMF, since other initiatives have been promoted by regulators in Malaysia, Spain, France and the United Kingdom.

However, the dangers lead us to other areas as well. According to the BBC, since 2014 there have been robberies by hacker attacks close to US $ 2,196 million, due to security problems. Pyramid scams are more continuous, there have been suspicious bankruptcies of platforms or the disappearance of cryptocurrency values.

If we focus on the national reality, it is important to supplement with some local data. In this regard, the results of the recent Ipsos survey, although it is focused on “Fraud in financial services”, shows that users claim to have a lack of knowledge about the regulation of the financial system. This shows the urgency of carrying out a deeper and more far-reaching work to the community, not only in terms of literacy and financial education, but also digital, by different instances of our society: State, supervisory entities, suppliers of the system and educational institutions, among others. In addition, there is a greater exposure of older people to become potential victims; therefore, a relevant role is played by the preventive information that can be provided.

If this scenario shows the shortcomings in the local financial market, with all the more reason it can be extrapolated to what happens for operations on foreign exchange platforms and on a product in which we are not experts, such as cryptocurrencies.

It is not about generating panic. It is just a call for caution. You may think you are free to manage your money in the best way you think, and it is. However, why cause bad luck if it is reasonable and healthy to pay attention to the warnings, which we can review in a basic way on the alerts page of our supervisory body, or, inquire opinions or complaints on the internet or directly in the Sernac. Sure these small, but profound actions, will stop us from some outburst.

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