The European Securities and Markets Authority cautioned in a document published on Tuesday that further crypto crises could damage traditional financial markets, citing the possibility of consumer rip-offs and operational breakdowns. The document provides a preliminary assessment of how agency officials perceive dangers in the crypto market as they prepare to assume new responsibilities under the European Union’s Markets in Crypto Assets Regulation, or Mica. The ESMA said, “Due to their volatile growth cycles, and as long as relevant regulatory provisions do not apply, crypto-assets entail numerous risks which may in future become relevant for financial stability.”
