Financial Services category powered by

CySEC issues crypto warning

08:32 - 24 December 2024

Financial Services

The Cyprus Securities and Exchange Commission (CySEC) has warned the public to beware of the high risk involved in crypto-assets, after their value rose sharply and suddenly last November, even though the Markets in Crypto-Assets Regulation (MiCA) is set to fully take effect on 30 December 2024.

Citing the European Securities and Markets Authority (ESMA), CySEC said that MiCA does not eliminate all risks, as markets in crypto-assets are not yet regulated at EU level.

"MiCA will start a new era of supervision for crypto-assets and related services as markets in crypto-assets are not yet regulated at European Union (EU) level," CySEC said, adding that "many crypto-assets are highly speculative and volatile, with prices subject to sudden and extreme fluctuations, also overnight”.

It also drew attention to the fact that MiCA’s safeguards are less extensive than those for traditional investment products and adds that clients may also not benefit from all protections immediately after MiCA enters into application. It also warned the public to "be very cautious when engaging with non-EU firms".

News Feed

Read More

Attica Bank's main shareholder wants Constantinos Herodotou as bank's Board Chairman
Interest rates continued to rise in December 2024, CBC says
Hellenic Bank announces new reduction in reference interest rate for loans linked to the ECB's base rate
Future forecasting: How Cyprus is becoming a focal point for fintech innovation
Ioannis Georgoulas: "I anticipate that the EMI market will consolidate much sooner than expected"
CySEC seeks views on the introduction of ICT oversight fees for entities covered by DORA
Central Bank of Cyprus sets reference interest rate at 11.50%
Cyprus Compliance Association and CFA Society Cyprus enter strategic partnership
Banking sector reports strong loan growth and nearly €1 billion deposit surge
Caius Capital LLP reduces its stake in Bank of Cyprus to below 5%