Cryptocurrencies, Esma alert: investment remains 'very risky'

New alert from the authorities on cryptocurrencies. After Bitcoin's $100,000 record and the boom of the entire crypto universe in November, and just a few days after the entry into force of the Mica (Markets in Crypto-Assets Regulation), which introduces uniform rules in the EU for issuers, Esma is further warning savers about this category of investment: the fear of the European Financial Markets Supervisory Authority, of which Consob is also a member, is that the combination of soaring prices and the arrival of the new rules will lead savers to "get carried away by enthusiasm" by betting on these assets lightly without assessing "very carefully" their needs and objectives.

Since the election of Donald Trump's return to the White House, who just a few days ago indicated former Paypal manager David Sacks as an advisor for AI and cryptocurrencies with the declared aim of making them flourish in the US, the CoinDesk Index 20, which measures the performance of the main digital assets, has gained 90%, Bitcoin has risen from 70 thousand dollars to over 100 thousand at the beginning of December while Ethereum has jumped from 2400 to 4 thousand dollars. The rally," Esma writes in its warning that follows other warnings already issued by European authorities, "reflects the growing interest in this type of asset, but also confirms its "highly volatile" nature: as has happened in other phases, the surge may be "short-lived" and therefore cryptocurrencies remain a "very risky" form of savings allocation. A few days ago, in a report for investors cited by Reuters, the American management giant Blackrock recommended allocating a maximum of 2% of one's portfolio in Bitcoin.

If, as of 30 December, the entry into force of the European Mica regulation opens a new phase in the supervision of cryptocurrencies and improves protections, nevertheless "it does not eliminate all risks," warns the European Authority, which highlights three aspects for savers to consider. Firstly, Mica's protections are not as extensive as for traditional products: for example, there are no compensation schemes in the event of the investment company's bankruptcy and no assessment of the client's ability to understand the products they are betting on is required. Secondly, not all protections will be in place immediately as some countries have opted for an 18-month moratorium for service providers without a Mica licence. Thirdly, risks are raised when opting for non-EU service providers by increasing the possibility of fraud and reducing the scope for redress.