The European Securities and Markets Authority (ESMA) has issued a fresh warning to cryptocurrency companies, cautioning them against creating confusion around the regulatory status of their offerings.
In a statement reported by Reuters, ESMA raised concerns about crypto platforms operating with a mix of regulated and unregulated products, without making clear distinctions for retail users.
According to the regulator, such practices may lead investors to mistakenly assume that all services fall under the protections of the Markets in Crypto-Assets (MiCA) framework.
The EU’s top securities watchdog said that highlighting MiCA authorization as a marketing tool risks misleading customers.
“Some firms may present their MiCA-regulated status in a way that blurs the line between compliant and non-compliant products,” the regulator noted, emphasizing that this creates unnecessary risks for consumers.
ESMA urged crypto asset service providers (CASPs) to avoid using regulated licenses to promote unrelated or non-compliant services and insisted that regulatory boundaries must be clearly communicated to avoid misinterpretation.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.