21Shares has urged the European Securities and Markets Authority to create “much-needed clarity” for retail and institutional crypto investors across Europe.
Crypto investment firm 21Shares is lobbying the European Securities and Markets Authority to establish clearer guidelines for the inclusion of crypto assets in undertakings for collective investment in transferable securities, to address inconsistencies regulatory requirements across Europe.
In a press release issued on Monday (October 7), the Zurich-based company said the move aims to address regulatory inconsistencies across Europe, which are currently causing confusion among retail and institutional investors.
While some European countries, such as Germany and Malta, allow UCITS funds to hold cryptocurrencies, others such as Luxembourg and Ireland do not, the company claims, adding that such a fragmented approach creates “ confusion, making it difficult for investors to understand and compare their options. »
“The lack of a common approach can lead to gaps in investor protection, as investors must access the asset through other means, often more expensive and less professionally managed. »
21Shares
The company proposed that ESMA introduce clear and consistent guidelines for indirect exposure to cryptocurrencies across all EU member states, arguing that this would help ensure a “high level of investor protection”, while allowing wider access to crypto investments.
The proposal comes as ESMA considers feedback from its recent consultation on the inclusion of new asset classes, including cryptocurrencies, in UCITS funds. As market participants await ESMA’s next steps, the timing of any potential regulatory changes remains unclear.
