21Shares Urges ESMA to Clarify Crypto Regulations in Europe

21Shares Advocates for Clearer Crypto Regulations in Europe

21Shares, a leading crypto investment firm, has called on the European Securities and Markets Authority (ESMA) to provide “much-needed clarity” for retail and institutional crypto investors across Europe. The firm emphasized the importance of establishing clear guidelines for the inclusion of crypto assets in Undertakings for Collective Investment in Transferable Securities (UCITS) funds.

Addressing Regulatory Inconsistencies

On October 7, 21Shares issued a press release highlighting the regulatory inconsistencies across Europe that currently lead to confusion for both retail and institutional investors. The Zurich-based firm pointed out that while some European countries, such as Germany and Malta, allow UCITS funds to hold crypto assets, others like Luxembourg and Ireland do not. This fragmented regulatory landscape creates challenges for investors trying to understand and compare their options.

“The lack of a common approach can lead to gaps in investor protection, as investors have to access the asset through other means, often more expensive and less professionally managed.”

The Need for Consistent Guidelines

21Shares has proposed that ESMA introduce clear and consistent guidelines for indirect exposure to crypto assets across all EU member states. The firm argues that such guidelines would help ensure a “high level of protection for investors” while enabling broader access to crypto investments.

This proposal comes at a time when ESMA is considering feedback from its recent consultation on the inclusion of new asset classes, including crypto, in UCITS funds. Market participants are closely watching ESMA’s next steps, although the timeline for any potential regulatory changes remains uncertain.

“A unified regulatory framework would not only protect investors but also promote the growth of the crypto investment landscape in Europe.”

In summary, 21Shares is urging ESMA to create a harmonized regulatory environment that would benefit both retail and institutional investors, ensuring better protection and more accessible crypto investment options across Europe.

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