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With the European Union continuously taking a lead in regulation, 21Shares AG, a crypto exchange-traded product (ETPs) firm, is urging the European Securities and Markets Authority (ESMA) to take action by creating a unified regulatory framework for including crypto assets in UCITS (Undertakings for Collective Investment in Transferable Securities) funds. 

According to the press release, the rules around crypto assets in UCITS funds are inconsistent across Europe. It was revealed that there are UCITS holding crypto in countries like Germany and Malta, while in other countries like Luxembourg and Ireland, this is not the case.

The lack of a unified regulatory framework can create confusion, causing a disruption in the investors’ activities. Furthermore, this confusion “can lead to gaps in investor protection,” according to 21Shares. 

Mandy Chiu, the Head of Financial Product Development at 21Shares, said: “The current patchwork of regulations is creating confusion and preventing retail investors from accessing the full potential of crypto assets.” 

“By providing a consistent set of rules across Europe, ESMA could open up new avenues for investors to diversify and enhance their portfolios in a regulated environment that is designed for investor protection.”

Chiu also stated that clear guidance from ESMA would promote market stability, investor protection and encourage further growth and development in the crypto realm.