The European Securities and Markets Authority (ESMA) has recently issued a warning regarding investments in certain asset types such as cryptocurrencies, The ESMA has indicated that these types of investments will remain largely unregulated in most countries until the EU’s Markets in Crypto Assets (MiCA) law is implemented across the European Union.
Furthermore, ESMA has emphasized that investment firms in the European Union, who offer cryptocurrencies alongside more traditional investment offerings, should explicitly inform their customers that cryptocurrencies are unregulated.
The warning follows efforts from the European Union’s securities watchdog to prepare for increased scrutiny of cryptocurrency transactions, following the bloc’s agreement on novel rules to regulate the crypto sector.
In summary, ESMA is urging caution when investing in cryptocurrencies due to their currently unregulated status in many jurisdictions. This is set to change with the planned enforcement of the EU’s MiCA law, which aims to regulate the crypto asset market in the region.