The European Securities and Markets Authority (ESMA), in a new report, warned of the risk of losing all funds when investing in digital assets such as Bitcoin.
In ESMA’s view, some cryptocurrencies are ‘highly risky and speculative’. The lack of regulation deprives investors of guarantees and protections, and keeps alive the earlier warnings, the authors of the report noted.
“Consumers should be aware of the high risks of buying and/or owning these instruments,” the report says.
ESMA added that stablecoins remain under close regulatory scrutiny.
In September 2020 the European Commission published a draft regulation laying the regulatory groundwork for crypto assets and stablecoins. The document also envisages the creation of a special legal regime for blockchain projects.
INATBA criticised the new rules and said they could burden the sector.
Earlier, in January 2021, European Central Bank President Christine Lagarde called Bitcoin a speculative asset, subject to regulation.
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