California AG issues warning-laden guidance for public interested in buying crypto

With the cryptocurrency market becoming increasingly complex and intimidating, California Attorney General Rob Bonta decided to offer some advice to first-time crypto buyers. The California Attorney General’s Office website now features a page that will help crypto newcomers “avoid the hype, [and] Get the facts.”

“Don’t fall for a fantasy – Cryptocurrency, like all investments, involves significant risk, and there’s no guarantee you’ll see significant returns – or any -“, Bonta said in a report. “Our new webpage is meant to be a resource for Californians curious about this volatile new market.”

The new page emphasizes customer safety. It provides a two-sentence explanation of what “crypto assets” are, along with a list of vocabulary, and warns that:

“Even when there are no scams, crypto assets can be risky, especially if you don’t have enough information to make an informed judgment about how you spend your money.”

Other than that, the page focused on scams, red flags and how to “stay safe”. This information is concise but complete. He reminded the reader of the limit of legal remedies available if something goes wrong with a cryptocurrency purchase, but gave detailed instructions on how and where to file a complaint. Along with explaining what a rug pull and pig butcher is, the guide reminded readers that celebrities get paid for what they say about crypto and the savvy buyer doesn’t fall under the charm of Fear of Missing Out.

Related: California regulators to investigate collapse of crypto exchange FTX

California, which has fourth largest economy in the world, often appears high on crypto-friendliness surveys and was highly ranked for its “crypto readiness” and growing legal infrastructure. In September, Governor Gavin Newsom vetoed a bill to create a licensing and regulatory framework for digital assets. Newsom said federal regulation needs to “focus more on digital financial assets” before states begin their regulatory efforts.