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The European Securities and Markets Authority (ESMA) Chairman Verenaros said the crypto market crash should be a “lesson of caution” for investors. She said there is a “real question” about whether many crypto assets will survive.
Verena Ross, chairman of the European Securities and Markets Authority (ESMA), warned investors about post-cryptocurrency investment in cryptocurrencies Lost 70% In its value, the Financial Times reported on Sunday.
She said, emphasizing that there was no prospect of a European bailout for out-of-pocket crypto investors:
I have already warned earlier this year. .. .. About the serious risk that individual investors were investing in some crypto assets.
ESMA Responsible person License of a crypto asset service provider recently agreed in Brussels as part of a tentative agreement on the Markets in Crypto-Assets (MiCA) proposal. The agreement will be effective from mid-2023 and will have an implementation period of 18 months.
Regulators have the authority to ban or limit crypto platforms if they are deemed to be improperly protecting investors or threatening market integrity or financial stability.
Ross has expressed concern that small investors will lose money because the global crypto market has shrunk by more than 70% over the past year. In May, the cryptocurrencies Terra (LUNA) and Stablecoin Terraus (UST) collapsed and many investors were wiped out. She gave her opinion:
Many of these [crypto assets] Will survive.
Gary Gensler, chairman of the US Securities and Exchange Commission (SEC), warned in May after the collapse of LUNA and UST: Many crypto tokens fail..
The ESMA chair continues: “I hope some of these investors will see this and take careful lessons to at least think about how much money to invest in these types of assets.”
In March, ESMA and other major European financial regulators warned consumers that “many crypto assets are very risky and speculative,” and investors “buy these assets.” , It is very likely that you will lose all the money you have invested. “
Ross was further quoted as follows:
We’re all saying that this isn’t currently regulated and you can’t control your provider … we know there’s a lot of scams and aggressive marketing going on.
Last month, Christine Lagarde, President of the European Central Bank (ECB), warning Cryptocurrency assets and decentralized finance (defi) can pose a financial stability risk. “This is especially true if the crypto asset market and services continue to grow rapidly … and the interconnection between both the traditional financial sector and the broader economy will be strengthened,” she emphasized. ..
On Monday, the Financial Stability Board (FSB) Robust regulatory framework In October, we will provide crypto assets to the G20 Finance Minister and Central Bank Governor.
What do you think of ESMA Chair Verena Ross’s comments? Let us know in the comments section below.
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