The European Securities and Markets Authority (ESMA) has warned firms in the European Union not to mislead consumers with crypto offerings.
Crypto regulations (MiCA), which started to become clear in the European Union, continue to shed light on the industry day by day. As a result of these regulations, new moves are coming from authorities and organizations. As crypto companies flock to Europe, the stance of regulatory authorities is noteworthy.
Finally, ESMA has requested that institutions that receive regulatory approval to offer traditional financial products be mindful of their crypto moves.
ESMA is Mindful of Crypto
The European Securities and Markets Authority (ESMA) has stated that organizations offering crypto offerings to their clients should be cautious.
ESMA, a European regulatory agency, referred to companies offering traditional financial products. ESMA said that these companies should not impose false feelings of security on customers when providing services on crypto.
What ESMA pays attention to here is that cryptocurrencies are in the risky asset class and move with high volatility. According to ESMA, companies providing services related to traditional financial products should approach their investors carefully if they offer crypto services.
Existing European Union rules ensure that investment vehicles are presented to customers in an appropriate way. However, crypto is not yet fully clear on this issue. MiCA is also said to leave regulatory loopholes until it comes into force in 18 months. Drawing attention to all this, ESMA warned companies that will attract customers with their crypto offer.
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