EU Market Regulator Warns Cryptocurrencies Pose Risks to Financial Stability

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ESMA, the European Union’s securities watchdog, has reiterated concerns about crypto regulation, warning that crypto-related risks could affect financial stability.

ESMA executive director Natasha Cazenave noted that this risk has increased due to the cryptocurrency industry’s rapid growth and deeper integration with traditional finance.

Cazenave addressed the issue in an opening statement at the European Parliament’s Economic and Monetary Affairs Committee hearing on crypto-assets and financial stability on April 8, 2025.

While ESMA views crypto markets as potential future risks to financial stability, the current impact remains minimal.