ESMA warns growing crypto ties could amplify risks to traditional finance

ESMA warns growing crypto ties could amplify risks to traditional finance

The EU securities regulator flagged tokenized equities, DeFi exploits and prediction markets as areas where growing crypto ties could pose risks to the broader financial system.

ESMA Flags Rising Crypto Links as a Potential Risk to TradFi

Europe’s top securities regulator is urging closer surveillance of how crypto markets are increasingly intertwined with traditional finance, warning that vulnerabilities in digital-asset ecosystems could contribute to wider financial-system shocks. In a risk monitoring report published Thursday, the European Securities and Markets Authority (ESMA) highlighted the “growing linkage between increasingly vulnerable crypto-asset markets and the [...]