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21Shares, a leading exchange-traded product (ETP) issuer focused on cryptocurrencies, seeks a comprehensive regulatory framework from European Union authorities. As one of the largest crypto fund issuers in the region, 21Shares is a key player in discussions regarding regulatory measures.
Regulatory Inconsistencies
21Shares expresses concerns about the existing legal inconsistencies among EU member states. While some UCITS funds are permitted to hold crypto assets, others face strict prohibitions on such transactions.
Recent regulations, implemented after extensive work, have led to several cryptocurrencies, including Tether, halting their services due to a lack of electronic money licenses in the region. Coinbase announced that by the end of the year, it would only offer licensed stablecoins like PYUSD and USDC to residents.
Expectation for Clear Guidance from ESMA
The company proposes that the European Securities and Markets Authority (ESMA) establish clear guidelines applicable to all EU entities. This move is expected to enhance investor protection.
21Shares emphasizes that if European markets align with those of Hong Kong and the United States, several crypto ETPs could be approved. Mandy Chiu, Head of Financial Product Development at 21Shares, highlights the significance of a consistent regulatory stance for Europe to lead in financial innovation.
Such regulations could promote market stability and investor protection while fostering further growth and development in the crypto asset sector.
Conclusion
21Shares’ request is seen as a significant step toward broader acceptance of crypto ETPs within the EU and enhancing investor protection. Clear regulations could stabilize the crypto market and enable the development of innovative financial products.
