EU regulators warn of offshore cryptocurrency risks under MiCA regulation

ChainCatcher news, the European Securities and Markets Authority (ESMA), the regulatory body overseeing the EU financial markets, has issued a new opinion highlighting the significant risks posed by global cryptocurrency companies seeking partial authorization under the Markets in Crypto-Assets (MiCA) regulation while conducting substantial business overseas.

ESMA's warning focuses on the complex organizational structures of many global cryptocurrency companies, which allegedly use EU-authorized brokers to send orders to execution venues outside the EU, often in offshore jurisdictions.