The EU financial market regulator considers the cryptocurrency in dangerous innovation

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In a new report, European Securities and Markets Management (ESMA) considers cryptocurrency as financial innovation that carries a lot of risks and threatens the stability of the existing system.

In the 110-page document called «Trends, Risks and Vulnerabilities», the regulator indicates that digital assets based on distributed registry technology can increase the efficiency of operational processes, providing a positive impact on business and consumers. By adding that the development of crypto industry carries with them a lot of threats for the economy.

According to the report, destabilization in capital markets led to increasing risks and led to an increase in investors’ interest in the digital assets market, which only aggravates the situation. As an example, the stories of the collapse of Archegos, Greensill Capital and Gamestop are given. The main risk factor, the regulator considers high volatility of the cryptomic, the capitalization of which over the past 4 months fell by 40%.

At the same time, according to ESMA, there are no less threat to the stability of the financial system and private stabilizes that reduce the transparency of calculations are represented. The report says that world regulators are closely followed by the development of this direction. In the future, the EU will introduce severe restrictions on stelkopins, and will oblige the issuers to own at least 3% of the coins issued.

The European Securities and Markets Management also touched upon the topic of the destructive influence of some protocols on the environment and continued discussions regarding the mining.

Previously, we also reported that the European Commission wants

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