The European Supervisory Authority (ESA) reminded investors that there is no legal basis for holding crypto-scammers accountable.
The ESA has issued a warning to crypto investors saying that they may “face the very real possibility of losing all of their invested money if they buy these assets.”
The regulator points out that investors should be aware of scammers who use misleading advertising involving media people on social networks. The watchdog warns that investors “should be especially wary of promises of quick and/or high returns, especially those that look too good to be true.” ESA draws attention to the fact that the legislation that regulates the cryptocurrency market in the European Union has not yet been adopted:
“ESA warns consumers that they should be aware of the lack of legal remedies available to them in the cryptocurrency market.”
The oversight body clarifies that the Markets in Crypto Assets (MiCA) bill has been voted on in a parliamentary committee and is now moving to discussion by EU governments, after which it can be ratified.
The ESA is a structure that includes the European Banking Authority (EBA), the European Securities and Markets Authority (ESMA) and the European Insurance and Occupational Pensions Authority (EIOPA).
MiCA harmonization in the European Union is progressing very slowly. Recently, legislators have removed from MiCA a provision banning bitcoins and other crypto assets based on the PoW algorithm. Last year, the European Council approved two proposals to regulate digital assets. Without waiting for the law, some European countries began to introduce their own rules for regulating cryptocurrencies.
Source: Bits
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