Speaking at a meeting of the Committee on Economic and Currency issues, Kazenava noted that now digital assets account for only 1% of world financial assets. This share is not so significant as to have a serious “side effect” on the traditional financial market. However, the crypto industry is developing rapidly, which means that it is increasingly intertwining with the financial sector, especially in countries friendly to cryptocurrencies, for example, in the USA. Therefore, a sharp drop in the course of cryptocurrencies can indirectly affect the world market, Kazenava believes.
“The crypto acting market develops rapidly and unpredictably, so you need to carefully follow it. Shocks, even in small markets, can generate large -scale problems that destabilize the financial system of Europe, ”said Kazenava.
The Executive Director of ESMA also noted the risks associated with the crypto industry: fraud, possible unholes of stablecoins from the course of fiat currencies and hacker attacks. Kazenava mentioned the recent hacking of the BYBIT crypto -tank, which lost cryptoactives by $ 1.4 billion and the collapse of the FTX crypto -tank in November 2022. The EU has already taken a number of measures to protect investors – from January 1, the law on the regulation of cryptocurrencies in the European Union (Mica) entered into force. However, according to Kazenava, there are no safe crypto assets, and it is possible that legislators and regulators will have to introduce additional rules to reduce potential risks.
Despite the adoption of cryptocurrencies in the United States, more than 95% of European banks do not participate in activities related to cryptocurrencies, Kazenava added. However, from 10% to 20% of European retail investors have access to cryptocurrencies.
In February, ESMA proposed to check the knowledge of cryptoconsults and oblige them to inform customers about the accompanying risks of investment in digital assets. In March, the financial regulator announced that USDT stabilcoins do not meet some Mica requirements.
Source: Bits
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