EU Securities Watchdog Warns Firms to Register Crypto Products Ahead of MiCA

Despite MiCA’s passage, both ESMA and Europe’s Systemic Risk Board want to ensure crypto is regulated and investors are protected


Vadim Sazhniev/Shutterstock modified by Blockworks


The European Securities and Markets Authority warned firms that they should register their crypto products, even as the Markets in Crypto-Assets Regulation looms over the EU. 

Last month, the European Union passed the Markets in Crypto-Assets (MiCA) legislation, mandating that crypto companies register in an EU-member state. While the extent of regulation under MiCA is not yet fully known, it also includes provisions for monitoring the environmental impact of crypto assets. Meanwhile, compliance oversight is entrusted to the European Securities and Markets Authority, or ESMA, and the European Banking Authority.

Despite MiCA being “close to adoption, crypto assets offered by investment firms will continue to be unregulated in most jurisdictions until MiCA applies. Some Member States have domestic legislation and specialist regimes in place which can provide protections for investors in relation to investment firms selling unregulated products and/or services.”

Essentially, the ESMA aims to ensure that investors are wholly educated on products that are not regulated so that they understand the differences – primarily the risks – that come with investing in speculative products such as crypto assets. 

“Unregulated products such as cryptoassets or non-transferable securities may present a higher level of risk for clients,” the authority said. “Where clients lose their initial investment and find out that they do not benefit from the protections afforded to them under financial regulation, they may complain to the investment firm for not having provided clear information about the products they were investing in.“ 

The ESMA’s warning comes a day after Europe’s Systemic Risk Board warned that MiCA isn’t enough, and that more work needs to be done to properly regulate crypto. 

Systemic “risks could materialize if, for example, interconnectedness with the traditional financial system increases over time,” it said.

Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.


Upcoming Events

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Screenshot 2024-05-23 091855.png


Bitcoin L2s aim to boost scalability while preserving decentralization and security, unlocking a better user experience, and new avenues for Bitcoin-powered innovations. However, no existing Bitcoin L2 leverages the full security of Bitcoin.



As part of the #Breakout2024 plans, Radix has introduced Token Trek


House members ask Gensler to keep a “consistent and equitable approach” with ether ETF proposals after the agency approved spot bitcoin ETFs in January


Using old-world instruments to address crypto user experience challenges goes against what this industry set out to do


And, weeks of a potential crypto ETF decision are no stranger to chaos


The FIT21 Act marks the second crypto-focused piece of legislation to advance in Congress this month


More than half of Solana transactions fail