21Shares Calls for Comprehensive Cryptocurrency Regulations in Europe 🚀
Famed for its role in the crypto ETP domain, 21Shares has voiced its demand for clearer and more cohesive regulations within Europe. The aim is to foster a favorable environment for investors interested in cryptocurrency.
21Shares Advocates for Clarified Cryptocurrency Regulations 📊
Recent reports indicate that 21Shares, recognized as one of the largest issuers of crypto exchange-traded products (ETPs) globally, is amplifying its call for regulatory clarity in Europe. Specifically, they are urging the European Securities and Markets Authority (ESMA) to formulate unified regulations that encompass cryptocurrencies. They suggest that cryptocurrencies should have a place within UCITS funds (Undertakings for Collective Investment in Transferable Securities).
The intent behind the advocacy from 21Shares is to unveil potential opportunities surrounding cryptocurrencies for investors across Europe.
Notably, 21Shares highlights the existing regulatory inconsistency throughout different countries in Europe. For instance, in Germany and Malta, UCITS funds are permitted to invest in cryptocurrencies, while the same does not hold true for Luxembourg and Ireland, presenting real discrepancies that contribute to confusion in the market.
Given this disparity, 21Shares calls upon the ESMA to establish uniform guidelines for all member states concerning indirect exposure to cryptocurrencies.
Regulatory Cohesion Needed Across EU Nations 🌍
With the complexity of European regulatory frameworks affecting not just direct but also indirect investments, including its own ETPs, 21Shares recognizes the urgency of the matter.
In doing so, incorporating crypto assets within regulated ETPs offers a streamlined pathway for gaining exposure to these digital assets through UCITS funds while maintaining cost-effectiveness and operational efficiency.
Speaking on the subject, Mandy Chiu, who leads financial product development at 21Shares, expressed:
“The disjointed regulatory landscape breeds confusion and hampers retail investors from seizing the full capabilities of crypto assets. A consistent regulatory framework across Europe would empower investors to diversify their portfolios while safeguarding their interests in a controlled environment. At 21Shares, we are committed to simplifying the trading of crypto products, aligning with the increasing demand from investors seeking to incorporate these assets into their financial strategies. Establishing a uniform regulatory approach will position Europe prominently within the realm of financial innovation. Clear guidance from ESMA would enhance market stability and protect investors while catalyzing growth in the crypto asset domain. It is time to initiate progress and establish a framework that reflects Europe’s tradition of encouraging innovation and market competitiveness.”
21Shares’ Journey in the Crypto Market in 2024 📈
Having participated in the cryptocurrency sector for several years, 21Shares made its debut in this space by launching its first crypto ETP in 2018.
As we consider the landscape of this year, 21Shares continues to evolve and introduce new financial products that center around cryptocurrencies.
Recently, 21Shares has introduced the 21BTC, intended to transform the market for Bitcoin tokenized on Ethereum. The initiative aims to furnish enhanced security and transparency compared to previous solutions like Wrapped Bitcoin (WBTC).
Additionally, in July 2024, 21Shares submitted its application to the U.S. Securities and Exchange Commission to roll out its ETF based on Solana’s spot market.
Earlier in May of this year, the proficient ETP issuer also revealed its plans to launch four fully collateralized exchange-traded notes (ETNs) on the London Stock Exchange (LSE). These ETNs not only mark 21Shares’ official entry into the UK market but are specifically designed for professional investors.
Through these steps, 21Shares holds a firm position in advocating for clearer regulations while actively contributing to the expansion of product offerings within the crypto space. The call for regulatory clarity could contribute significantly to shaping the future landscape of cryptocurrency within Europe and beyond.
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