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Europe’s securities watchdog warns crypto firms against using their MiCA status as promo tool

2025-07-11 13:03:04

Main Idea

Europe’s securities watchdog ESMA warns crypto companies against falsely promoting their MiCA-regulated status to avoid misleading investors.

Key Points

1. ESMA issued a warning to crypto companies about falsely using their MiCA-regulated status as a marketing tool.

2. Under MiCA, crypto service providers must obtain a CASP license from a national regulator to operate in the EU.

3. Some companies may misuse their regulated status to attract customers while offering products that are not fully compliant or safe.

4. ESMA highlighted concerns about Malta’s Financial Services Authority for its lax approach in granting crypto licenses.

5. The review found Malta’s regulatory standards were only 'partially' met, raising concerns about oversight.

Description

Europe’s securities watchdog ESMA has warned crypto companies not to falsely promote their MiCA-regulated status to avoid misleading investors. The European Securities and Markets Authority issued a warning to crypto companies on Friday, urging them not to use their regulated status under the EU’s MiCA framework, as a promotional tool, as initially reported by Reuters. For context, the MiCA regulation aims to protect investors by imposing strict rules on how client assets are safeguarded and how...

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