The EU is deliberating changes in its official product investment market, and asked stakeholder opinions which could make investing in crypto possible with approvals.
The Undertakings for Collective Investment in Transferable Securities (UCITS) is a product investment market in the European Union. It values itself at over 12 trillion euros. A recent development in the region could soon make investing in crypto for the market permissible.
The European Securities and Markets Authority (ESMA), the EU regulator, is trying to make these changes. It has invited opinions from stakeholders regarding the decision on crypto and other asset classes. Besides crypto assets, the likely new investment assets could be unlisted equities, commodities, catastrophe bonds, etc.
Simply put, UCITS are investment funds that simplify and protect investing transactions. They comprise products that can fulfill this criterion. ETFs, mutual funds, and money market funds also make up for UCITS. The ESMA is responsible for their regulation as the main securities regulator. If the UCITS funds allocate some portion of their crypto investments, it could be a big impetus for the sector.
They could become another factor in broadening the base of crypto investors. The spot crypto ETFs in the US and Hong Kong have already led to more crypto investors joining the market.
Meanwhile, the official press release of the ESMA stated, “UCITS are a key pillar of the EU capital market and the UCITS Directive has created a harmonized and well-functioning regime throughout the European Union for the management and cross-border marketing of investment funds. “
Recently, the European Parliament passed the AML bill, which will likely bring new regulations for crypto firms in the region. Several other projects, including the digital euro initiative, are also being researched.
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