In a statement reported by Reuters, ESMA raised concerns about crypto platforms operating with a mix of regulated and unregulated […]
The post EU Warns Crypto Platforms Over Misleading Investors on Regulatory Status appeared first on Coindoo.
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.
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“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.
The post EU Warns Crypto Platforms Over Misleading Investors on Regulatory Status appeared first on Coindoo.
Source: https://coindoo.com/eu-warns-crypto-platforms-over-misleading-investors-on-regulatory-status/
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