EU Authorities Issues Warning To Crypto firms
EU's ESMA issues warning to crypto firms with new MiCA rules; feedback open until Sep 20.
The European and Securities Markets Authority (ESMA) has issued a warning to the cryptocurrency industry with new rules. These rules, known as MiCA proposals, are for companies providing crypto services (CASPs). They cover how CASPs should handle customer complaints and avoid conflicts of interest. Verena Ross, the ESMA chairwoman, has reminded people that investing in cryptocurrencies can still be risky.
In a statement, Ross said: "We want to make sure that companies working with cryptocurrencies know that the EU is not a place where they can avoid rules. Even with MiCA, cryptocurrencies will never be completely safe."
ESMA has titled its new proposal "Technical standards specifying certain requirements of MiCA regulation". It is asking for opinions from the crypto industry on the new rules. The period for giving feedback lasts until September 20. The agency is also asking crypto companies to share private information about their expected earnings.
ESMA pointed out recent problems in the crypto industry, including misuse of clients’ money and theft of cryptocurrencies due to hacking attacks. The MiCA rules will start in 2024, allowing wallet providers and exchanges to operate across the 27 European Union countries with just one license.
