ESMA Warning About Unregulated Crypto Products Companies

ESMA Warning About Unregulated Crypto Products Companies

By: TOGRP

May 29, 2023 7:06 AM / 0 Comments Web3 Business Banking and Finance ZentaPost In Brief News

The European Securities and Markets Authority (ESMA) issued a public warning to investors about the dangers that occur when investment businesses provide both regulated and unregulated goods and/or services. According to the statement, retail investors often depend only

The European Securities and Markets Authority (ESMA) issued a public warning to investors about the dangers that occur when investment businesses provide both regulated and unregulated goods and/or services. According to the statement, retail investors often depend only on investment businesses’ reputations, making it easier for them to miss the potential hazards of unregulated goods and/or services supplied by investment firms. This is particularly true when the unregulated product .

As a result, ESMA’s statement is intended to remind companies of the actions they should take in such circumstances (e.g., disclosure with appropriate documentation) so that investors are fully aware of the unregulated status of these products and services and the fact that they may not be able to benefit from the regulatory protections that apply to investing in regulated products. The EU’s Markets in Crypto Assets Regulation (MiCA) is scheduled to introduce MiFID-style standards to the industry, but it will not go into force for another 18 months. However, ESMA, a Paris-based institution that brings together and coordinates national regulators, is concerned that certain businesses are promoting and abusing ambiguity.

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By: TOGRP

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