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ESMA issues warning for investors on ‘inherent risks’ of cryptoassets

Published on: 13 December 2024
Published by LNB News

LNB News 13/12/2024

Document Information

Issue Date: 13 December 2024

Published Date: 13 December 2024

Jurisdiction(s): Eire and European Union

Article summary

The European Securities and Markets Authority (ESMA) has issued a warning to investors that, despite the new era of supervision soon to commence with the Markets in Crypto-Assets Regulation (MiCA), ‘the inherent risks of investing in cryptoassets remain’. ESMA says many cryptoassets are ‘highly speculative and volatile, with prices subject to sudden and extreme fluctuations’. The recent surge in the price of certain cryptoassets might be ‘yet another short-lived spike’, ESMA warns, and such assets remain prone to novel risks due to their underlying technology.

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