The European Supervisory Authority (AES) issued a strong warning to crypto investors today. Among them, the inherent volatility of the digital assets and the limited legal protection they provide, depending on the type of cryptoactive and supplier involved.
The action seeks to warn investors of the rapid movement of the market expanding. In this case, regulations have progressed, but still show a point of vulnerability.
Since December 2024, MICA Regulations (Crypto-active Markets) have concluded in an essential way in the European Union, in an attempt to establish a supervisory structure for issuers and suppliers. Cryptonotics reported on that at the time.
This legal framework for this cryptocurrency was launched as efficient and necessary for the European financial system. However, the authorities themselves warn that “not all cryptographic actions are equal.” Consumer protection could drop dramatically Depending on the type of assets or services, investors will be exposed to the lack of thorough information or a unified claims process.
The warning comes with a detailed information sheet explaining what MICA means. In that sense, the AES bloc consists of European Banking Authorities (ABE), European Securities Markets (AEVM), and European Insurance and Retirement Pensions (AESPJ) authorities. It encourages consumers to adopt emergency measures.
Among these measures, they ask them to check if the service provider or issuer they use is permitted in the EU, and they will know what products they want before investing and ensure protection for their digital wallets.
“Consumers are encouraged to know about the product or service and assess the risk before investing,” the statement said.
The “vulnerability” of the legal framework lies in several pillars. Legal protection depends on certain types of cryptographic activity Generates a service, incomplete regulatory shield.
Additionally, some companies that had already provided cryptographic active services by December 30, 2024 in accordance with national laws will continue to operate until July 1, 2026, or until they are permitted or denied thanks to MICA that occurs first. “This means that consumers will not benefit from MICA protection if they use the services of that supplier until the transition period expires and the supplier is approved by MICA,” the authorities argue.
Multiple exhibitions for users are fast Risk of total investment losses Due to extreme volatility. Also, especially in Spain, as many have already seen, the lack of a reward system in the case of supplier bankruptcy and high vulnerability to fraud, fraud and cyber harm.
MICA regulations have been in effect in stages since July 2024. In December of that same year, a central registration of licensed suppliers was created, taking into account that this was a critical step for investor safety. “Only certified companies appearing in the AEVM registry can provide cryptographically active services in the EU thanks to MICA,” the authorities say.
In an international context, this warning highlights the global urgency for control of technology advances through jumps and boundaries, but regulators fight to establish a solid foundation.