European Financial Regulator Warns of Rising Crypto Threat to Financial Stability
- ESMA warns that crypto’s growing links to traditional finance could pose serious risks, especially during market shocks, despite crypto currently making up less than 1% of global financial assets.
- While crypto isn’t yet systemically important in the EU, ESMA urges caution, noting that regulatory safeguards like MiCA may not fully prevent future instability.
The European Union’s main financial watchdog is once again sounding the alarm on crypto. This time, it’s not about scams, fraud, or shady offshore exchanges. It’s more about the entire sector’s potential to spill over into traditional markets and cause real damage.
In a report published on April 8, Natasha Cazenave, executive director of the…
