The European regulator, ESMA, has issued a warning to crypto companies not to leverage their MiCA regulatory status for promotional purposes.
Warning from ESMA
ESMA has warned crypto companies against using their regulated status under the MiCA framework as a marketing tool. The regulator noted that some companies may mislead clients by implying that all their products are regulated.
What is MiCA
The MiCA regulation (Markets in Crypto-Assets) was established to protect investors and impose strict rules on how client assets are safeguarded and complaints are handled. Companies providing crypto services must obtain a CASP license from a national regulator to operate within the EU.
Critique of Licensing Process in Malta
ESMA’s warning followed a recent peer review that criticized Malta’s Financial Services Authority for its lenient approach in granting crypto licenses. The review stated that the authorization process only partially met expected standards, raising concerns about regulatory consistency across the EU.
ESMA's warning emphasizes the importance of complying with regulatory standards and the need for crypto companies to avoid confusion with their MiCA status, which is crucial for investor protection.
