European supervisory authorities (EBA, EIOPA, and ESMA – ESA) are warning consumers that crypto assets can be risky and that legal protection, if any, may be limited depending on which crypto assets they invest in.
As reported on the European Insurance and Occupational Pensions Authority (EIOPA) website on Monday, the warning is accompanied by an information bulletin that explains what the new EU regulation on crypto-asset markets (MiCA) means for consumers. Specific steps are recommended that consumers can take to make informed decisions before investing in crypto assets, such as checking whether the provider is licensed in the EU.
In addition, consumers are advised to familiarize themselves with the product or service and assess the risk before investing, check whether the crypto-asset service provider is licensed in the EU, and ensure that any wallets used to store their crypto-assets are sufficiently secure. These steps are particularly important at a time when consumer interest in such products and services is growing, partly due to aggressive promotion on social media by finfluencers.
According to the information available, from December 2024, the new EU Regulation on Markets in Crypto-assets (MiCA) will apply to certain types of crypto-assets and establish a consistent supervisory regime at both national and European levels for issuers and providers of crypto-asset services across the EU.
