European Supervisory Authorities (ESA: EBA, EIOPA and ESMA) have issued a warning to consumers, recalling that cryptocurrencies pose risks and that legal protection, if any, may be limited, depending on the type of cryptocurrencies in which they invest.
Announcement by the Cyprus Securities and Exchange Commission states that this warning is accompanied by a brochure that explains what the new EU Regulation on Cryptocreprene (MICA) means to consumers. ESAs propose specific steps that consumers can take to make documented decisions before investing in cryptocurrencies, such as checking whether the provider is licensed in the EU.
As stated, since December 2024, the MICA Regulation has been applying to certain types of cryptocurrencies and establishes a coherent supervisory framework at both national and European level for publishers and providers of cryptocurrencies within the EU.
Although innovative financial products, including cryptocurrencies, can enhance the efficiency, durability and competitiveness of the EU financial system, consumers should be aware that not all cryptocurrencies are added.
In addition, it is noted that consumer protection (if any) may be limited, depending on the type of cryptocurrencies and services provided (eg lack of access to complete information or transparent and uniform complaints management procedures).
It is recommended that consumers be informed of the product or service and to evaluate the risks before investing, to check whether the Crypt Services provider is authorized to the EU and to ensure that the digital wallets they use to store their cryptocurrencies are sufficiently safe.
These steps are particularly important in a period of increasing interest by consumers in such products and services, partly due to aggressive promotion through social media from persons of influence in the field of financial known as "Finfluencers", noted.
The joint brochure of the ESA - available in all EU languages - provides an overview of what the cryptocurrencies are, which are regulated by the Mica and what not, and for the providers with whom consumers may come into contact, the announcement concludes.
