LONDON, (Reuters) – Cryptoasset investors could lose all of their funds and fall for scams according to the European Union’s Securities, Banking and Insurance Watchdogs in a joint statement.

According to the EU authorities, consumers face the real risk of losing their entire investment money if these assets are bought,” they said.

This marks an increase in direct warnings of EU authorities to consumers regarding cryptoassets. It also demonstrates that consumers do not have any recourse to compensation or protection under the existing EU financial service law.

The regulators are becoming more concerned that consumers may be buying 17,000 cryptoassets including bitcoin and Ethereum, which together account for 60% market share, but are not fully informed of the potential risks.

“Consumers need to be aware of the dangers associated with misleading ads, especially via social media platforms and influencers. The statement warned that consumers should not be enticed by promises of fast returns or high profits, particularly if they seem too good to be true.

The statement also stated that consumers should be aware that some cryptoassets require high energy consumption and have a negative impact on the environment.