21Shares has urged the European Securities and Markets Authority to give institutional and individual crypto investors “much-needed clarity.”
In an effort to resolve regulatory disparities around Europe, cryptocurrency investment firm 21Shares is putting pressure on the European Securities and Markets Authority to create more precise rules for cryptocurrency assets in Undertakings for Collective Investment in Transferable Securities funds.
The Zurich-based company stated in a news release on Monday, October 7, that the goal of the action is to resolve regulatory disparities around Europe, which presently cause uncertainty for institutional and retail investors alike.
This fragmented approach produces “confusion, making it difficult for investors to understand and compare their options,” according to the firm, adding that while certain European nations, like Germany and Malta, let UCITS funds own crypto, others, like Luxembourg and Ireland, do not. 21Shares:Â
The lack of a common approach can lead to gaps in investor protection, as investors have to access the asset through other means, often more expensive and less professionally managed.”
Arguing that this would assist in providing a “high level of protection for investors” and enable larger access to crypto investments, the firm has requested that ESMA adopt clear, standard guidelines for indirect exposure to crypto across all EU member states.
The recommendation is made as ESMA considers comments made during its most recent consultation on adding new asset classes—including cryptocurrency—to UCITS funds. Market participants are monitoring ESMA’s future moves, but it’s unclear when any possible regulatory changes will happen.
