DeutschThe European financial supervisory authority ESMA has sent a clear message: Crypto companies within the EU must not mislead their customers as to whether their offered products are regulated or not. In a statement on Friday, the European Securities and Markets Authority expressed serious concerns that many crypto platforms are distributing both regulated and unregulated products side by side – causing confusion.
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The background is the MiCA regulatory framework (“Markets in Crypto-Assets”), which came into force in June 2023 and is considered the world’s first comprehensive package of laws for crypto assets within the EU. It is intended to ensure greater transparency and protect investors from dubious offers. But this is exactly where the problem lies: Not all offers on a platform are automatically covered by MiCA – although many providers give this impression.
EU Supervisory Authority ESMA Raises Alarm about Crypto
ESMA warns that providers are deliberately using their officially licensed status as a marketing tool – thereby suggesting that all products are secured. “This practice can lead to dangerous misperceptions among investors”, the statement said. It is particularly intransparent when services stand side by side without clear labeling – for example, a regulated stablecoin next to an unregulated utility token. It is hardly recognizable for the layman which offer is protected – and which is not.
MiCA has created important protection mechanisms, especially for small investors: Customer funds must be kept separate, liability issues are clearly regulated, and complaints must be processed within certain deadlines. However, these rights only apply to products that fall under MiCA – not to all tokens or services on a crypto marketplace.
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With the current warning, ESMA is increasing the pressure on crypto companies to position themselves more clearly and transparently. The suspicion: Some providers are deliberately relying on the regulatory gray area in order to maintain the appearance of respectability while continuing to offer speculative or unverified tokens. This is a dangerous game, especially for newcomers – because they often rely on the trust that the EU seal conveys.
Clear Message to Bitcoin and Co.
This warning is part of a series of measures with which European authorities are trying to make the still young crypto ecosystem safer. The EU Commission had already announced in the spring that it would pay particular attention to the advertising and market behavior of crypto service providers. The French AMF, Spain’s CNMV and Germany’s BaFin also support this line.
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For investors, this means: Take an even closer look in the future. Regulated is not the same as safe – and not everything that appears in an app is also under the protection of MiCA. The European Union may have created a global role model with MiCA. But even the best set of rules does not protect against misleading marketing. Transparency is required here – and clear communication by the companies themselves. The message from ESMA is clear: Trust is good – control is better. (mck)
