Fun

EU Regulator Warns About Crypto — Questions Whether Many Will Survive

News Feed - 2022-07-14 09:07:46

EU Regulator Warns About Crypto — Questions Whether Many Will Survive


European Securities and Markets Authority (ESMA) Chair Verena Ross says that the crypto market crash should be a “cautionary lesson” for investors. She noted that there is a “real question” about whether many crypto assets will survive. ESMA Chair on Crypto Risks and Regulation


Verena Ross, chair of the European Securities and Markets Authority (ESMA), has cautioned investors about cryptocurrency investing after the crypto market lost 70% of its value, the Financial Times reported Sunday.


Emphasizing that there was no prospect of a European bailout for out-of-pocket crypto investors, she said: We already warned earlier this year . . . about the serious risks retail investors were taking investing in some of the crypto assets.


ESMA will be responsible for licensing crypto asset service providers as recently agreed in Brussels as part of the provisional agreement on the Markets in Crypto-Assets (MiCA) proposal. The deal will enter into force from mid-2023 and has an 18-month implementation period.


The regulator will have the power to ban or restrict crypto platforms if they are seen to not properly protect investors, or threaten market integrity or financial stability.


Ross expressed concerns about small investors losing money, citing that the global crypto market has shrunk by more than 70% in the past year. In May, cryptocurrency terra (LUNA) and stablecoin terrausd (UST) collapsed, wiping out many investors. She opined: I think there is a real question about whether many of these [crypto assets] will survive.


The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, warned in May after the collapse of LUNA and UST that many crypto tokens will fail.


The ESMA chair continued: “I hope that some of these investors will see this and will take a cautionary lesson at least to think about how much of their money they invest in these kinds of assets.”


In March, ESMA and other leading European financial regulators warned consumers that “many crypto assets are highly risky and speculative,” noting that investors “face the very real possibility of losing all their invested money if they buy these assets.”


Ross was further quoted as saying: We have all said that this is something that is not currently regulated, not something where there is any control over the providers … We know there is a lot of fraud and aggressive marketing going on.


Last month, the president of the European Central Bank (ECB), Christine Lagarde, warned that crypto assets and decentralized finance (defi) could pose financial stability risks. “This would be particularly the case if the rapid growth of crypto-asset markets and services continue … and the interconnectedness with both the traditional financial sector and the broader economy is intensified,” she stressed.


On Monday, the Financial Stability Board (FSB) announced that it will deliver a report outlining a robust regulatory framework for crypto assets to the G20 finance ministers and central bank governors in October. Tags in this story Crypto regulation, ESMA bitcoin, ESMA crypto, ESMA cryptocurrency, eu crypto regulation, Verena Ross, Verena Ross bitcoin, Verena Ross crypto, Verena Ross cryptocurrency


What do you think about the comments by ESMA Chair Verena Ross? Let us know in the comments section below. Kevin Helms


A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. US Bankruptcy Judge Freezes Crypto Hedge Fund Three Arrows Capital"s Assets REGULATION | 19 hours ago G20 Watchdog Announces "Robust" Global Crypto Regulation Coming in October REGULATION | 2 days ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleAdshares Establishes Premium Partnership With Sandbox Next articleState-Owned Swiss Bank Postfinance to Offer Clients Direct Access to Crypto Market Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItSEC Risks Violating Admin Procedure Act by Rejecting Spot Bitcoin ETFs, Says Grayscale


Grayscale Investments" CEO explains that the U.S. Securities and Exchange Commission (SEC) could potentially violate the Administrative Procedure Act by not approving a spot bitcoin exchange-traded fund (ETF). SEC Approving Spot Bitcoin ETF Is "a Matter of When and Not ... read more.Fed"s Bullard Wants to Raise Bank Rate to 3.5% by Year"s End, Hints at 75 Basis Point Rate Hike Survey: Adoption in Argentina Grows, With 12 out of 100 Adults Having Invested in Crypto Digital Ruble ‘Much Needed,’ Russia’s Central Bank Says, Won’t Delay Testing Iran to Increase Penalties for Unauthorized Cryptocurrency Mining

News Feed

Singapore High Court Grants Crypto Lender Vauld Temporary Protection From Creditors
Singapore High Court Grants Crypto Lender Vauld Temporary Protection From Creditors Singapore-based Vauld will have some breathing space after the country’s High Court gave
Brayden Lindrea5 hours agoIs Binance’s $4B settlement the green light for spot Bitcoin ETFs?One crypto executive predicted five months ago that spot Bitcoin ETFs would only be approved after Binance lost ground on its
Report Shows Financial Troubles Plagued Bankman-Fried’s Alameda Research as Early as 2018
Report Shows Financial Troubles Plagued Bankman-Fried’s Alameda Research as Early as 2018 Before FTX collapsed it was assumed that Alameda Research was one of the top quantitativ
Bitcoin price to see massive move to new all-time high if chart pattern plays out —Trader
Nancy Lubale2 hours agoBitcoin price to see massive move to new all-time high if chart pattern plays out —TraderA unique trading pattern projects a massive upward move for Bitcoin price within the next few months.1347
VC Roundup: Investments in Web3 startups top $1B in July
Ana Paula Pereira3 hours agoVC Roundup: Investments in Web3 startups top $1B in JulyThis edition of Cointelegraph’s VC Roundup features Pichi Finance, Sybill, Hyperbolic, Raad Labs, and zkLink.483 Total viewsListen to
IMF Says Sub-Saharan Africa Already Feeling Effects of the ‘Big Funding Squeeze’
IMF Says Sub-Saharan Africa Already Feeling Effects of the "Big Funding Squeeze" Countries from the Sub-Saharan Africa (SSA) region face a “big funding squeeze” which i
Nigerian High Court dismisses Binance exec’s suit over detention
Derek Andersen5 hours agoNigerian High Court dismisses Binance exec’s suit over detentionNadeem Anjarwalla escaped prison and traveled to Kenya, and his colleague will press his rights claims in court next month.1251 T
Lessons from CertiK's dispute with Kraken
Shahar Madar3 hours agoLessons from CertiK"s dispute with KrakenWhite hat hacking is a crucial component of cybersecurity, but it can come with controversy — as CertiK and Kraken recently illustrated.159 Total views9
Most Crypto Sent From Wallets Sponsoring Russia in Ukraine War Reaches CEXs, Binance, Research Shows
Most Crypto Sent From Wallets Sponsoring Russia in Ukraine War Reaches CEXs, Binance, Research Shows Millions of U.S. dollars’ worth of cryptocurrency has been sent to centralize
OKEx Korea Reviewing Decision to Delist Privacy Coins Zcash and Dash
The South Korean arm of cryptocurrency exchange OKEX has halted, for now at least, the delisting of two privacy coins due to regulatory pressure from the Financial Action Task Force (FATF).
William Suberg9 hours agoBitcoin ‘Terminal Price’ hints next BTC all-time high is at least $110KIf history repeats itself, Bitcoin will easily be able to deliver a six-figure price next cycle, according to the on-cha
Arijit Sarkar1 hour agoRipple CTO warns against XRP scams amid SEC-induced hypeThe XRP price rallied over 70% — bringing up its value from $0.47 to $0.82 in a day. The incident also marks the biggest price jump for XRP