European regulator warns crypto firms against misleading customers

Published 11/07/2025, 11:02
European regulator warns crypto firms against misleading customers

Investing.com -- The European Securities and Markets Authority (ESMA) issued a warning on Friday to cryptocurrency companies against misleading customers about their regulatory status.

The European Union’s securities regulator expressed concern that crypto asset service providers (CASPs) are offering both regulated and unregulated products on the same platforms.

This creates potential confusion for investors about which products are protected under the EU’s crypto regulation, known as MiCA.

ESMA highlighted that MiCA includes various investor protection measures, such as rules for safeguarding client assets and requirements for handling complaints.

However, the regulator noted that some companies may be using their regulated status as a marketing tool while encouraging confusion between their regulated and unregulated offerings.

The warning represents the latest effort by European authorities to address risks associated with cryptocurrency investments and services.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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