Risks are increasing as individuals consider putting some of their money into crypto (although at the moment it remains of limited relevance for the majority of the public). Aside from the risk of losing their money given the inherent riskiness of crypto, people may also be exposed to scams and fraud given the opaque nature of the products.
The European Commission has proposed new legislation (Markets in Crypto Assets (MiCA)) which should provide greater legal certainty and consumer protection (and support financial stability). At the moment, there is no regulatory protection for consumers in the world of crypto. Conclusion The financial landscape is changing and central banks are adapting to the change.