ESMA warns of potential stability issues as crypto market grows, calls for closer monitoring
From Cointelegraph
April 9, 2025 01:14 AM:
The European Securities and Markets Authority (ESMA) warns that crypto’s growth could threaten traditional financial markets’ stability. Currently, crypto only accounts for 1% of global financial assets, but interconnections with traditional markets are increasing, especially in the US. ESMA calls for closer monitoring to prevent potential spillover effects on financial systems.
The European Union has implemented the Markets in Crypto-Assets (MiCA) regulation to safeguard against crypto risks. ESMA acknowledges MiCA as a breakthrough but emphasizes that there is “no such thing as a safe crypto-asset.” More rules may be necessary to mitigate future risks amid recent double-digit falls in both crypto and stock markets.
While crypto adoption has surged in the US, over 95% of European banks have yet to engage in crypto-related activities. However, retail participation is increasing, with 10% to 20% of European investors having crypto exposure. Reports indicate that US crypto adoption ranges between 15% and 28% of the population, reflecting global interest in crypto.
Read more at Cointelegraph: EU markets regulator says crypto may cause ‘broader stability issues’ as market grows