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EU securities watchdog to review crypto eligibility for UCITS investments

  • The European Securities and Markets Authority (ESMA) is reviewing the rules governing crypto asset investments by UCITS (Undertakings for Collective Investment in Transferable Securities).
  • ESMA's review is in response to a request from the European Commission to ensure that UCITS rules keep pace with the rapidly developing crypto sector.
  • The current regulatory framework for UCITS funds does not specifically address digital assets like cryptocurrencies, leading to the need for a reevaluation of asset inclusion.
  • ESMA is seeking input from stakeholders on how to adapt the UCITS framework to include digital assets and is particularly interested in the implications for investor protection and market stability.

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