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Trinidad and Tobago Authorities Warn Residents against Cryptocurrencies

It’s yet another time that the government, led by their local authorities is warning their citizens against investing in cryptocurrencies and this time around its Trinidad and Tobago authorities. Through local news outlet tv6tnt.com, several Trinidad and Tobago authorities released a joint statement warning their citizens of the dangers that come with making investments in the crypto industry.

Per information on tv6tnt.com, the agencies responsible for the warning are Financial Intelligence Unit of Trinidad and Tobago (FIU), the Trinidad and Tobago Securities and Exchange (TTSE) and the Central Bank of Trinidad and Tobago (CBTT). Although all the agencies confirmed making investments in digital coins is a profitable venture their primary goal was to remind their citizens the cryptocurrencies sector isn’t regulated in Trinidad and Tobago and as such virtual currencies aren’t legal tender. Besides the latter warning, the regulator also urged citizens to be wary of Ponzi schemes disguised as investment vehicles. They further urged citizens to conduct thorough background checks before deciding to make any investments in any coins.

Reasons for Issuing the Warning

First and foremost the regulators were quick to mention that the sector isn’t regulated thus not under any authorities which have a legal mandate in Trinidad and Tobago. And since the bodies mentioned above don’t have jurisdiction over players in the industry, they can’t protect consumers when they incur losses. Besides the above, players in the industry aren’t working under any legal structures hence the chances of them being fraudsters are high. Furthermore, the industry itself comes with new and emerging technologies which might prove to be difficult for investors. For instance, digital coins come with high volatility features which make it unsuitable for making investments. Although the authorities are carefully monitoring the sector, they urged citizens to be more vigilant.

As regulators do their best to warn Trinidad and Tobago citizens of the dangers that come with making investments in crypto more enthusiasts are likely to invest in the sector. The returns are more than enough to attract more investors. Furthermore, there are already players setting up their offices to grab a piece of the Trinidad and Tobago pie. Apart from Trinidad and Tobago authorities issuing warning China also warned its citizens. But despite the warning, the industry continued to evolve. Today people are making investments in the sector while others are trading on a regular basis.