Lithuania Banking Association warns regarding risks associated with cryptocurrencies

In Lithuania, a self-governing banking organization has subjected a warning related to the risks linked with cryptocurrencies to domestic investors.

On Tuesday the Lithuania Banking Association issued a statement and supposed that as cryptocurrency has in recent times gained noteworthy attention, it still remains difficult to understand to domestic investors. So the investors were advised as well as warned to be careful in dealing with these digital assets.

As per the statement by the Banking Association, it supposed ‘those who make mind up to invest in cryptocurrency should become conscious that they do so only at their own risk. These virtual currencies are unattended as well as unregulated. At present, value of cryptocurrencies is entirely based on speculations and transactions of such currencies are generally irrevocable and also anonymous.’

The Lithuania Banking Association  Association created themselves as a self-governing body to inform the public regarding these latest financial technologies as well as relevant regulations. The association comprises of chief financial institutions in the country which comprises SEB Group, Danske Bank, Swedbank as well as LKU Credit Union Group.

Lithuania Banking Association further on plans to keep on associated with the country’s central bank known as Bank of Lithuania in maintaining a distance on or after all activities which are linked with cryptocurrencies. The association also states that ‘LBA members stringently stick on to the position of Bank of Lithuania to without a doubt cut off their activities from all the virtual currencies and also not to offer linked services.’

The statement also turns up as the central bank is moving forward with its attempt to keep an eye on the growth as well as development of cryptocurrency linked business similar to ICOs, i.e. initial coin offerings within its territory. Just past few weeks, Bank of Lithuania started a check out over a domestic ICO which supposedly lift up about 80 million dollars which is about 97.8 million, and that was observed by the regulator to be offering securities. This action pursues earlier ICO regulation which was released by the central bank.

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