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.