The European Insurance and Occupational Pensions Authority, together with the European Banking Authority and the European Securities and Markets Authority, issued a warning to consumers that crypto-assets can be risky and that legal protection, if any, may be limited depending on the crypto-asset and service used. The warning is accompanied by a consumer factsheet explaining what the EU Markets in Crypto-Assets Regulation (MiCA) does and does not cover. The ESAs emphasise that consumer protections can differ materially across crypto-assets and services, including where consumers lack comprehensive information or access to transparent, uniform claims handling. They recommend practical steps before investing, including understanding the product and its risks, checking whether the crypto-asset service provider is authorised in the EU, and ensuring any wallets used are sufficiently secured, noting increased consumer interest and aggressive promotion on social media by finfluencers. The factsheet outlines what crypto-assets are, which are regulated under MiCA and which are not, and the types of providers consumers may encounter. MiCA entered into force on 29 June 2023, with provisions for issuers of e-money tokens and asset-referenced tokens applicable from 30 June 2024 and for most crypto-asset service providers from 30 December 2024. ESMA is empowered to publish a central register of crypto-asset white papers, authorised crypto-asset service providers and non-compliant entities, with only authorised and listed firms permitted to provide crypto-asset services in the EU under MiCA; however, some Member States may apply transitional arrangements allowing certain pre-existing providers to operate under national law until 1 July 2026 or until authorisation is granted or refused, meaning consumers do not benefit from MiCA protections when using such providers during the transition.

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