The post Crypto regulators call for investor protection in the crypto ecosystem appeared on BitcoinEthereumNews.com.

The European Securities and Markets Authority (ESMA) has warned crypto firms against misrepresenting the extent to which their products are regulated, signaling a renewed effort by European regulators to tackle risks in the digital asset space. This move highlights a broader shift by EU authorities toward stronger oversight of the crypto industry. Under the Markets in Crypto-Assets (MiCA) regulation—a unified EU law aimed at streamlining rules for digital assets and related services—investor protections include clear standards for asset custody and complaint resolution, ESMA noted. Crypto regulators call for investor protection in the crypto ecosystem  For years, regulators worldwide have expressed concerns about the crypto-related risks to digital asset investors. This was after various crypto platforms left several investors bankrupt after investing millions of their assets in them. An example is FTX, which failed in 2022. To address this, ESMA tried to unmask various factors that could lead to risks to which investors could be exposed. An example involves crypto asset service providers (CASPs) offering regulated and unregulated products on the same platform at once. The regulators explained how risky this was to investors, stating that customers might be unaware of which products lack MiCA’s protection. ESMA exposed additional risks linked to Crypto-Asset Service Providers (CASPs). The regulator pointed out that some CASPs promote their MiCA-regulated status to attract customers, which can create confusion about which aspects of their offerings are regulated. Following this, ESMA has urged crypto firms to stop using their regulatory status as a tool for promotion and suggesting to their clients that crypto products and services are regulated when, in reality, they are not covered by the EU’s rules. Notably, MiCA does not regulate products and services that include direct investments in commodities like gold and lending involving crypto-assets.  The EU releases new guidelines in the crypto…

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Filed under: News - @ July 12, 2025 12:28 am