21Shares Urges ESMA To Standardize Crypto Regulations For UCITS Funds

According to PANews, on October 7, crypto investment firm 21Shares called on the European Securities and Markets Authority (ESMA) to establish standardized regulatory rules for including cryptocurrencies in Undertakings for Collective Investment in Transferable Securities (UCITS) funds. The company highlighted the current lack of consistency, which has led to confusion among retail and institutional investors across Europe. For instance, Germany and Malta permit UCITS funds to include cryptocurrencies, while Luxembourg and Ireland do not. Mandy Chiu, Head of Financial Product Development at 21Shares, explained that this fragmented approach limits retail investors' ability to fully leverage cryptocurrencies. She added, 'By providing a consistent set of rules across Europe, ESMA can open new avenues for investors to diversify and enhance their portfolios in a regulated environment designed to protect investors.' Chiu also noted that clear and consistent regulations would help stabilize the market while promoting the growth of the cryptocurrency industry. As a result, 21Shares is urging ESMA to develop comprehensive guidelines that would allow all EU member states to indirectly invest in cryptocurrencies. According to 21Shares, this would protect investors and broaden the channels for cryptocurrency investment. It is noteworthy that 21Shares' call for regulatory clarity comes as ESMA reviews feedback from its recent consultation on including new asset classes, such as cryptocurrencies, in UCITS funds.