The European Securities and Markets Authority (ESMA) has cautioned crypto companies against misleading customers regarding the regulatory status of their products. In a statement, ESMA highlighted that the practice of offering both regulated and unregulated products on the same platform poses significant investor protection risks. Under the EU’s new crypto rules, companies must obtain a crypto asset service provider licence to operate across the bloc. Reuters notes that regulators around the world have long been concerned about the risks faced by crypto investors, with the collapse of various crypto platforms, including FTX in 2022, leaving millions of investors out of pocket.
Crypto firms warned on misleading claims
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