EU Regulator’s Bold Statement: ‘No Such Thing as Safe Cryptocurrency’

• The European Securities and Markets Authority (ESMA) has issued a warning to cryptocurrency investors.
• ESMA has proposed rules for Crypto-Asset Service Providers (CASPs) to address conflicts of interest and handle customer complaints.
• Verena Ross, the head of the agency, has emphasized that there is no such thing as a ‘safe cryptocurrency/asset’ despite the introduction of MiCA regulations.

ESMA Issues Warning to Cryptocurrency Investors

The European Securities and Markets Authority (ESMA), the body responsible for overseeing the implementation and technical developments of the EU’s MiCA crypto regulations package, has issued a cautionary statement to cryptocurrency investors. This warning comes as part of the agency’s efforts to regulate the burgeoning cryptocurrency market and protect investors from potential risks.

New Rules for Crypto-Asset Service Providers

In addition to the investor warning, ESMA has put forward a set of proposed rules for Crypto-Asset Service Providers (CASPs). These rules are aimed at preventing conflicts of interest and outlining how crypto companies should handle customer complaints. The proposed rules are part of a broader package aimed at regulating the cryptocurrency market and providing a safer environment for investors.

No Such Thing as a ‘Safe Cryptocurrency’

Verena Ross, the head of ESMA, has issued a stern warning to investors. Despite the introduction of the MiCA regulations, she emphasized that there is no such thing as a ‘safe cryptocurrency/asset’. This statement underscores the inherent risks associated with investing in cryptocurrencies, even in a regulated market. The new rules proposed by ESMA are open for interpretation by participants in the crypto industry, who have until September 20 to provide feedback to the agency.