The European Union frequently warns that Bitcoin (BTC) and cryptocurrencies are dangerous, but has issued new warnings.
European securities regulators have warned cryptocurrency companies not to mislead their customers, according to a Reuters report.
The European Securities and Markets Agency (ESMA) warns encryption platforms not to mislead customers about product regulatory status.
ESMA said that while some CryptoAsset Service Providers (CASPs) offer both regulated and unregulated products, they put retail investors at risk by not being able to clearly distinguish between products. ESMA emphasized that companies must clearly distinguish between products that fall within MICA and those that fall within MICA.
In this regard, ESMA said that Crypto Asset Service Providers (CASPS) will provide “investment risk” for both unregulated and unregulated products through the same platform.
“Some CASPS use regulated status under MICA as a marketing discussion, which can lead to confusion between unregulated products and services.”
Finally, ESMA also stated that cryptocurrency companies should not use regulated products as “promotional tools” or that they should not imply that unregulated products are within MICA’s scope.
*This is not investment advice.
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