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Fintech

EU watchdog doubles down on crypto warning amid bitcoin boom

Stablecoins, like Facebook's Diem, could also raise financial stability concerns

The total market capitalisation of cryptoassets now exceed the highs of 2018 at more than €500bn, ESMA said in its Trends, Risks and Vulnerabilities report
The total market capitalisation of cryptoassets now exceed the highs of 2018 at more than €500bn, ESMA said in its Trends, Risks and Vulnerabilities report Photo: Getty Images

The European markets regulator has repeated warnings about the risks of cryptoassets for investors, noting that record prices for cryptocurrencies such as bitcoin have heightened the threat level.

The European Securities and Markets Authority said the prices of non-regulated cryptoassets reaching all-time highs “imply significant risks for investors”, noting that most cryptocurrencies are outside of the watchdog’s reach and characterised by extreme price volatility.

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