Crypto Exchange Traded Product (ETP) giant 21Shares announces it is pushing European authorities for a more complete regulatory framework.
According to a new announcement from 21Shares, the company is asking the European Securities and Markets Authority (ESMA) to set aside a regulatory framework for crypto assets in Undertakings for Collective Investment in Transferable Securities (UCITS) funds.
21Shares says Europe is currently experiencing legal inconsistencies between member states, resulting in certain UCITS being allowed to hold cryptocurrencies, while others are excluded.
The company also argues that a lack of consistency leads to gaps in investor protection. 21Shares recommends that EMSA establish clear guidelines to be applied across all EU entities.
According to the company, this would bring the EU markets in line with the Hong Kong and US markets, which have already approved several crypto exchange-traded funds (ETFs).
Says Mandy Chiu, head of financial product development at 21Shares,
“The current patchwork of regulations creates confusion and prevents retail investors from accessing the full potential of crypto assets. By providing a consistent set of rules across Europe, ESMA could open new avenues for investors to diversify and improve their portfolios in a regulated environment designed for investor protection. At 21Shares, we are focused on making crypto trading easier, more secure and more conventional, meeting the growing demand from investors looking to incorporate these assets into their strategies.”
“With a unified regulatory stance, Europe can position itself at the forefront of financial innovation. Clear guidelines from ESMA would not only promote market stability and investor protection, but also encourage further growth and development in the crypto asset space. We believe it is time to move forward and provide a framework that reflects the European tradition of supporting innovation and competitive markets.”
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