The European Securities and Markets Authority (ESMA) said in a May 25 statement that if investment firms within the European Union (EU) offer crypto assets (virtual currencies) alongside traditional products, consumers will It may give a false sense of security, he said.
ESMA says companies can use regulatory approval when offering shares and funds in traditional financial products (TradFi) to access sound financial advice and compensation schemes in the event of crypto troubles. He said he was concerned about making customers think.
EU rules known as the Markets in Financial Instruments Directive (MiFID) ensure that investment brokers sell only suitable financial products to their clients, but not for investment opportunities such as gold, real estate and non-transferable loans. not necessarily applicable.
The EU’s Crypto Market Regulation (MiCA) will introduce similar rules to MiFID in this area, but the regime will come into force in about 18 months. In the meantime, ESMA, which is also the body that coordinates national regulators, is concerned that some companies will foster and abuse the ambiguity.
“Investment firms should be fully aware of the regulatory status of the products and services they receive and take all necessary steps to clearly disclose to clients where regulatory protection does not apply,” ESMA said. He added that regulatory adaptation should not be used as a propaganda tool.
ESMA has previously warned that cryptocurrencies are risky, with a document released in October highlighting emerging threats such as hacking and consensus manipulation. ESMA will also soon begin consultations on the detailed relevant legislation to implement the MiCA.
｜Translation: coindesk JAPAN
｜Editing: Toshihiko Inoue
｜Original: EU Investment Firms Should Clearly State Crypto Is Unregulated, Watchdog Says