21Shares, a leading crypto exchange-traded product (ETP) giant, is taking steps to advocate for a more comprehensive regulatory framework in Europe. The firm has recently announced its efforts to urge the European Securities and Markets Authority (ESMA) to establish a regulatory framework for crypto assets in Undertakings for Collective Investment in Transferable Securities (UCITS) funds.
One of the main issues highlighted by 21Shares is the existing legal inconsistency among European member states, leading to discrepancies in the allowance of certain UCITS to hold crypto assets while others are prohibited. This lack of uniformity not only creates confusion but also poses gaps in investor protection. To address these concerns, 21Shares is calling for ESMA to set clear guidelines that would apply uniformly across all EU entities.
By aligning European markets with the regulatory standards of Hong Kong and the US, where several crypto exchange-traded funds (ETFs) have already been approved, 21Shares believes that a unified regulatory stance would benefit both investors and the industry as a whole. Mandy Chiu, Head of Financial Product Development at 21Shares, emphasized the importance of providing a consistent regulatory framework to enable retail investors to access the full potential of crypto assets in a regulated and secure environment.
Chiu stated, “The current patchwork of regulations is creating confusion and preventing retail investors from accessing the full potential of crypto assets. By providing a consistent set of rules across Europe, ESMA could open up new avenues for investors to diversify and enhance their portfolios in a regulated environment that is designed for investor protection.”
Furthermore, 21Shares believes that a unified regulatory stance would not only promote market stability and investor protection but also foster further growth and development in the crypto asset space. By positioning Europe at the forefront of financial innovation, clear guidance from ESMA could support the region’s tradition of fostering innovation and competitive markets.
In conclusion, 21Shares is advocating for a regulatory framework that aligns with Europe’s commitment to supporting innovation and competitiveness in the financial sector. By addressing the current regulatory inconsistencies and providing clear guidelines for crypto assets in UCITS funds, ESMA can pave the way for a more robust and investor-friendly environment for crypto investments in Europe. Subscribe to get email alerts and stay updated on the latest developments in the crypto industry.