EU regulator urges crypto firms to disclose regulatory status of products
The European Union’s financial watchdog has issued a statement reminding investment firms to make sure their clients are aware of the regulatory status of the products they are offering.
In an announcement, the European Securities and Markets Authority (ESMA) highlighted crypto assets and reminded companies that while regulation is on the way, crypto will remain unregulated in most jurisdictions.
The ESMA stated: The ESMA expressed concerns over unregulated products and services offerings. According to the regulator, these carry prudential and investor protection risks.
In addition, the financial watchdog believes that it’s possible for clients to be “misled as to the level of protection they get.”⚠️ #ESMA warns investors of risks that arise when investment firms offer both regulated and unregulated products and/or services.
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