The European Securities and Markets Authority (ESMA) is witnessing a growing interest in the crypto-asset market. Considering consumer protection and the influence of the crypto-asset market on the traditional financial market, ESMA has presented the newest risks related to crypto-assets. Some sources of the risk generated by crypto-assets are still novel, such as those linked to product design, technological development or the complex infrastructure built around crypto-assets.
ESMA emphasises the need for continuous monitoring of the crypto-asset market and its interconnectedness with the financial system to assess newly emerging threats. The key matter is the swift implementation of the proposal for a Regulation on Markets in Crypto-Assets (MiCA), which covers the issuers of unsecured crypto-assets, stablecoins, crypto-asset trading platforms, and crypto wallets.
The report is available here:
https://www.esma.europa.eu/sites/default/files/library/esma50-165-2251_crypto_assets_and_financial_stability.pdf