MiCA, the European Crypto Asset Markets Legislation designed to oversee the cryptocurrency market, has become one of the most important market regulations in recent times. However, an EU official stated that the regulation does not guarantee a risk-free crypto environment.
Verena Ross, head of the European Securities Authority ESMA, said that MiCA has laid out a standard set of rules for the crypto industry across the EU. However, Ross pointed out that crypto markets are inherently risky.
“Investors need to be aware that MiCA does not offer the same protection as traditional financial products.”
Verena Ross talked about the benefits of the new regulation after her warning. Ross stated that thanks to MiCA, they aim to prevent money laundering activities carried out over crypto.
MiCA, which became law in June, introduced a set of rules for cryptocurrencies. The legislation aims to regulate the sector in terms of security and material audits, especially consumer confidence. Experts expect Europe’s crypto law to set a global standard.
