In the present atmosphere, one EU regulator views cryptocurrency as an indication of greater risk-taking.
ESMA recently issued a report on various vulnerabilities, trends, and risks in the EU or European Union found in 1H21.
Content of the Report
The chief outcomes of the report include the out-of-the-ordinary growth and volatility of crypto markets. These are convincing cases that demand strict regulatory authorities. The same was also stressed out in ECs suggested exchanges in the regulations of crypto assets. Many issues and problems are on the EU’s agenda. It also includes the recovery of the market from the drastic consequences of Covid-19. The proclaimed ESMA report records the overall improvement of the financial standpoint. It predicts that the financial economy of Europe will get back to its original pre-pandemic yield rate by the end of 2022.
Recovery Status and Improvements
The recovery kept on pushing mainly because of the lowered tensions of restrictions for public health, uncertainty, and the monetary support policies from the central bank. In the latest scenario, ESMA identified crypto markets as evidence of the sensibility and dynamics in the last six months. ESMA is visibly excited about the rapid rally growth of the GameStop saga. Alongside GameStop, there have been reports of a vaster increase in retail trading fueled by social media with a substantial increase in the price range of crypto assets. As the increases in the trading activity have been transpiring outside the supervisory perimeter of the EU, it has left behind protection concerns for investors. That includes all the details concerning the report. On a concluding note, we could say that if all the issues are fixed and accounted for, Europe will reach its earlier economic output in no time.