- ESMA warns EU crypto investors about limited MiCA protections until July 2026.
- MiCA does not fully address crypto risks due to their unique nature.
- Comprehensive safeguards under MiCA will only apply after December 2024.
In a recent statement, the European Securities and Markets Authority (ESMA) provided crucial clarifications regarding the timeline for implementing the Markets in Crypto-Assets Regulation (MiCA).
The ESMA first highlighted that the impending entry of MiCA represents a significant milestone in developing a unified rulebook for regulating and supervising crypto-asset issuance, trading, and service provision.
However, the ESMA noted that the MiCA does not comprehensively address all the risks associated with crypto. The regulator claims it is due to crypto underlying technology being susceptible to unique operational and security risks.
Furthermore, ESMA stated that even with the implementation of MiCA, it is essential for retail investors to understand that there can be no guaranteed safety when dealing with cryptocurrencies.
In parallel, the regulator mentioned that the implementation phase of MiCA extends from its first entry into fo…
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