According to an Oct. 7 statement, crypto investment agency 21Shares called on the European Securities and Markets Authority (ESMA) to develop standardized regulations to include cryptocurrencies in funds for collective investment in transferable securities (UCITS). The company noted that the current approach lacks consistency, for example, Germany and Malta allow 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 the ability of retail investors to fully utilize cryptocurrencies: "By providing a consistent set of rules across Europe, ESMA can open up new ways for investors to diversify and increase the value of their portfolios in a regulated environment designed to protect investors." Chiu also pointed out that clear and consistent rules will help stabilize the market while promoting the growth of the cryptocurrency industry.
Therefore, 21Shares urged ESMA to develop comprehensive guidelines to allow all EU member states to indirectly invest in cryptocurrencies, which will protect investors and broaden the channels for cryptocurrency investment. (CryptoSlate)