The European Securities and Markets Authority (ESMA) once again calls attention to the potential risks crypto poses to financial markets. With the growth of the crypto industry, this issue is becoming increasingly relevant.
ESMA's Warning on Crypto Risks
ESMA executive director Natasha Cazenave, in her statement during a hearing at the European Parliament, warned that risks associated with cryptocurrencies could impact the stability of financial markets. She noted that the growth of the crypto sector introduces additional risks to the financial system.
Current State of Cryptocurrencies
Despite the warnings, Cazenave emphasized that the current effect of cryptocurrencies on financial stability is minimal. Cryptocurrencies account for only about 1% of total global financial assets, and more than 95% of EU banks do not participate in the crypto market.
Comparison of EU and US Approaches
While ESMA expresses concerns over crypto risks, a different situation is observed in the US. The US Securities and Exchange Commission is taking steps to support innovation in the crypto sector, making the US approach more positive. It is also worth noting that the US Department of Justice has disbanded its National Cryptocurrency Enforcement Team.
ESMA's warnings underscore the importance of monitoring the crypto sector, despite its small share in the global financial system. The differing regulatory approaches between the EU and the US may influence the future development of the market.
