The European Union's financial watchdog has issued a statement reminding investment firms to ensure their clients understand the regulatory status of the products they offer.
In an announcement, the European Securities and Markets Authority (ESMA) highlighted crypto assets and reminded companies that while regulation is ongoing, crypto will remain unregulated in most jurisdictions. ESMA said: “With regard to cryptoassets in particular, whi le Market Regulation for Cryptoassets ( MiCA) is about to be adopted, until MiCA is implemented, cryptoassets offered by investment firms will continue to be unregulated in most jurisdictions.” ESMA has concerns about unregulated products and services. These pose prudential and investor protection risks, according to the regulator. In addition, the financial watchdog argues that customers risk being "misled about the level of protection they receive".
To mitigate such risks, ESMA recommends that investment firms take steps to ensure that their clients are aware of the regulatory status of the products they invest in. The regulator also advised companies to clearly inform customers when regulatory protections do not apply to their products or services . In addition, ESMA urges investment firms to consider the impact of unregulated activities on their business when developing risk management policies and systems. At the same time, cryptocurrency companies are starting to establish operations in Ireland to expand their presence in Eur ope. On May 25 , cryptocurrency firm Gemini chose Ireland as its European base. Gemini founder Cameron Winklevoss confirmed that his company has chosen Ireland as its "entry point into the EU".
In addition to Gemini, cryptocurrency exchange Kraken has also begun preparing to expand its business in Europe. On April 18, the Dublin-based exchange subsidiary was authorized as a virtual asset service provider by the country's central bank.
