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Crypto Assets "Highly Risky, Speculative, Unregulated," Top European Regulator Claims

Wed, 03/17/2021 - 14:05
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Vladislav Sopov
The European Securities and Markets Authority (ESMA) releases its first report on market risks and trends in 2021 – and it sounds alarming
Crypto Assets "Highly Risky, Speculative, Unregulated," Top European Regulator Claims
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The Latest Trends, Risks and Vulnerabilities (TRV) Report of 2021 by the European Securities and Markets Authority (ESMA) shows that top European financial watchdogs are still very hostile to crypto.

Crypto sphere remains highly risky and unregulated

This document summarizes the positions of three European watchdogs: besides ESMA, it presents the views of the European Banking Authority (EBA) and the European Insurance and Occupational Pensions Authority (EIOPA).

EU authorities suspicious about crypto
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The three bodies agreed that all previous warnings issued during the Crypto Winter of 2018-2019 are still relevant.

Therefore, the European Supervisory Authorities (the common name for the watchdogs that authored this report) reiterate their February 2018 joint warning:

Consumers must be alert to the high risks of buying and/or holding these instruments, including the possibility of losing all their money.

One more alarming aspect of the cryptocurrencies market is its unregulated status. Thus, holders of crypto riches should not expect legal and financial protection from EU regulators.

Regulators continue sending mixed signals

Meanwhile, in early Q4, 2020, the European Commission unveiled its proposal for regulatory frameworks for crypto markets. ESMA emphasizes that this proposal is not yet EU law, so no citizen can currently benefit from any protective measures prescribed by this document.

As a result, it is obvious that European regulators are not ready to greenlight crypto transactions in 2021. Neither are their American colleagues. As covered by U.Today previously, U.S. Treasury Secretary Janet Yellen claimed that Bitcoin (BTC) is an "extremely inefficient" system.


In addition, the U.S. CFTC sues digital payment mogul Ripple Inc. and its top officers for offering alleged illegal securities in the form of XRP crypto tokens.

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About the author

Blockchain Analyst & Writer with scientific background. 6+ years in IT-analytics, 3+ years in blockchain.

Worked in independent analysis as well as in start-ups (, Monoreto, Attic Lab etc.)