21Shares, a leading cryptocurrency exchange traded product (ETP) company, has announced that it is seeking a more complete regulatory framework from European authorities.
According to a new announcement from 21Shares, the company is asking the European Securities and Markets Authority (ESMA) to create a regulatory framework for crypto assets for Collective Investment Units in Transferable Securities (UCITS) funds.
According to 21Shares, Europe is currently plagued by legal disagreements between member states, resulting in certain UCITS being allowed to hold cryptocurrencies while others are not allowed to hold cryptocurrencies. Possession is prohibited.
The company also claims that the lack of consistency creates a gap in investor protection. 21Shares recommends that EMSA establish clear guidelines that apply to all EU organizations.
According to the company, this will bring the EU market into line with markets in Hong Kong and the US, which have already approved several crypto exchange traded funds (ETFs).
Mandy Chiu, Head of Financial Product Development at 21Shares, said:
“The current patchwork of regulations is causing confusion and preventing retail investors from leveraging the full potential of crypto assets. 21Shares could open up new avenues for investors to diversify and strengthen their portfolios in a protective regulatory environment, with growing demand from investors to incorporate crypto assets into their strategies. In response, we are focused on making trading in crypto products easier, more secure, and more traditional.”
“A unified regulatory stance will put Europe at the forefront of financial innovation. Clear guidance from ESMA will not only promote market stability and investor protection, but also support further growth in the crypto asset sector. We believe that the time is now to move forward and provide a framework in line with Europe’s tradition of supporting innovation and competitive markets.”
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