EU Regulators Urge Investment Firms To Be Transparent About Crypto Investment Risks

The European Securities and Markets Authority (ESMA) is expressing concerns over the potential misrepresentation of risk in the crypto investment sector by EU-based firms offering digital assets alongside traditional financial instruments. According to the EU regulatory agency, these firms could be leveraging their regulatory approval for offering traditional financial stocks or funds to give clients a false assurance of sound financial advice or compensation mechanisms in case of any mishaps with their crypto investments.