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Sweden’s financial regulator, Finansinspektionen, or FI, has issued a fresh alert to retailers about high risks and poor customer security associated with crypto-related investment.

In a note published on Monday, the regulator wrote that although it had already issued an alert about the risks associated with Bitcoin (BTC) trading, it was publishing further guidance following the conclusion of a broader review of the crypto-asset market.

The FI reported that it has carried out a “thematic market review of financial instruments with underlying crypto-assets.” FI Director General Erik Thedeén said:

“Products based on crypto-assets are unsuitable for most, if not all, retail consumers. The consumer protection available is inadequate, and crypto-assets are difficult, if not impossible, to value on a credible basis.”

The Deén view is compounded by the fact that consumer security laws in Sweden do not adequately shield consumers from the dangers involved with the buying of financial goods or instruments that use crypto assets as their underlying assets.

The FI alert coincides with a time of marked cryptocurrency spot and derivatives instability. Bitcoin has fallen more than 17 percent in value over the past 24 hours, and BTC futures positions worth $5.64 billion have been liquidated over the same time span.

Although it is clear that the Swedish financial authorities are cautious about the health and effect of cryptocurrency markets, the country’s central bank is undertaking a research and development pilot for a centrally-issued e-crona that could supplement cash.

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