The European Banking Authority, together with the European Insurance and Occupational Pensions Authority and the European Securities and Markets Authority, published an updated consumer warning highlighting that crypto-assets can be high risk and that legal protection may be limited depending on the crypto-asset and the provider used. The warning is accompanied by a consumer factsheet explaining what the EU’s Markets in Crypto-Assets Regulation (MiCA) does and does not cover, and urges consumers to take steps such as checking whether a provider is authorised in the EU. MiCA applies to certain types of crypto-assets and establishes an EU-wide supervisory regime for issuers and crypto-asset service providers, with provisions for issuers of e-money tokens and asset-referenced tokens applicable from 30 June 2024 and most provisions for service providers applicable from 30 December 2024. The ESAs note that consumer protection may be limited in practice depending on the product and service, including where consumers lack comprehensive information or access to transparent and uniform claims handling. Recommended consumer actions include understanding the product or service and assessing risks before investing, verifying EU authorisation status, and ensuring wallets used to store crypto-assets are sufficiently secured, particularly amid rising interest and aggressive promotion on social media. Under MiCA, only firms authorised and listed on the European Securities and Markets Authority’s central register are allowed to provide crypto-asset services in the EU, but some Member States may apply a transitional period for firms operating under national law before 30 December 2024. Where this applies, such firms may continue under national law until 1 July 2026 or until authorised or refused authorisation under MiCA, whichever is sooner, and consumers do not benefit from MiCA protections when using services from these providers during the transition.

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