It’s been just revealed the fact that the EU securities watchdog revealed an important warning. Check out the latest reports about this below.
EU securities watchdog reveals massive warningThe European Securities and Markets Authority warned firms that they should register their crypto products, even as the Markets in Crypto-Assets Regulation looms over the EU, according to the latest Blockworks article.
Recently, the European Union approved the Markets in Crypto-Assets (MiCA) legislation, which requires crypto organizations to register in an EU-member state. The full scope of MiCA regulations is not yet clear, but it also encompasses measures to monitor the environmental effects of crypto assets.
The European Securities and Markets Authority (ESMA) and the European Banking Authority are responsible for ensuring compliance.
Despite MiCA being “close to adoption, crypto assets offered by investment firms will continue to be unregulated in most jurisdictions until MiCA applies. Some Member States have domestic legislation and specialist regimes in place which can provide protections for investors in relation to investment firms selling unregulated products and/or services.”
The main objective of ESMA is to guarantee that investors receive complete education on unregulated products. This ensures that they are aware of the differences, especially the risks, associated with investing in speculative assets such as cryptocurrencies.
“Unregulated products such as cryptoassets or non-transferable securities may present a higher level of risk for clients,” the authority said.
The same notes continued and stated the following:
“Where clients lose their initial investment and find out that they do not benefit from the protections afforded to them under financial regulation, they may complain to the investment firm for not having provided clear information about the products they were investing in.“
Check out the latest reports about the matter in the original article that has been posted by the online publication mentioned above.
