In the past weeks, the European Crypto Asset Markets (MICA) regulation, which forms the main framework of the status of crypto assets in Europe and the regulations that may be encountered in the future, received the final approval from the European Parliament.
However, the European Securities and Markets Authority (ESMA) thinks that cryptocurrencies will be unregulated until MICA comes into effect.
According to Coindesk's report, ESMA "tokens offered by investment firms will remain unregulated in most jurisdictions until MiCA is implemented." said.
ESMA also said that investment companies that offer the opportunity to invest in cryptocurrencies may mislead their consumers about security.
In this regard, ESMA advised investment companies to take measures to ensure that their customers are aware of the legal status of the products they invest in, in order to reduce the risks involved in cryptocurrencies.
Apart from this recommendation, ESMA also told companies to openly notify customers when regulatory protections for cryptocurrencies do not apply.
“ESMA advises investment companies to take all necessary measures to ensure that clients are fully aware of the legal status of the product/service they are receiving, and to clearly disclose this to clients when regulatory protections do not apply.”
As it is known, ESMA has previously warned investors that cryptocurrencies are risky.
