tl;dr
Crypto ETP provider 21Shares is urging European authorities to establish a comprehensive regulatory framework for crypto assets in UCITS funds. The company is seeking consistent guidelines from the European Securities and Markets Authority (ESMA) to address legal inconsistencies among member states ...
21Shares, a prominent crypto ETP provider, is calling on European authorities to establish a comprehensive regulatory framework for crypto assets in UCITS funds. The company emphasizes the need for consistent guidelines from the European Securities and Markets Authority (ESMA) to address legal inconsistencies among member states and enhance investor protection.
The aim is to align EU markets with Hong Kong and the US, where crypto ETFs have already been approved. Mandy Chiu, Head of Financial Product Development at 21Shares, advocates for unified regulations to promote market stability, investor protection, and innovation in the crypto asset space.
21Shares highlights the legal inconsistency between member states in Europe, leading to varying allowance of certain UCITS to hold crypto assets while others have been barred. The company asserts that this lack of consistency results in investor protection gaps and urges ESMA to establish clear guidelines to apply across all EU entities.
Mandy Chiu emphasizes, "The current patchwork of regulations is creating confusion and preventing retail investors from accessing the full potential of crypto assets. By providing a consistent set of rules across Europe, ESMA could open up new avenues for investors to diversify and enhance their portfolios in a regulated environment designed for investor protection."
The company believes that a unified regulatory stance in Europe would not only promote market stability and investor protection but also encourage further growth and development in the crypto asset space, positioning Europe at the forefront of financial innovation.