21Shares, a Zurich-based investment firm, is urging the European Securities and Markets Authority (ESMA) to establish unified guidelines for the inclusion of crypto assets in the UCITS framework.

Current Situation Overview

Currently, European countries have differing approaches to including crypto assets in UCITS. While Germany and Malta allow such inclusion, Luxembourg and Ireland do not, leading to a fragmented regulatory environment.

21Shares' Position

21Shares points out that the lack of a unified regulatory approach could result in less investor protection, as investors may resort to more expensive and less professionally managed means to access crypto assets. The firm proposes that ESMA develop consistent guidelines across the EU.

Market Impact

Mandy Chiu from 21Shares emphasizes that unified regulation would not only protect investors but also strengthen Europe's position as a leader in financial innovation. This would also foster market stability and support growth in the crypto sector.

Unified rules for crypto assets within the UCITS framework could improve investment access and enhance investor protection in Europe. This is a vital step for advancing financial innovation in the region.