European Union: European Supervisory Authorities issued advisory on risks and limited legal protection for crypto-assets

On 6 October 2025, the European Supervisory Authorities, including the European Banking Authority, the European Insurance and Occupational Pensions Authority, and the European Securities and Markets Authority (ESMA) issued a joint advisory on the risks and limited legal protection applicable to crypto-assets. The advisory applies to consumers and firms offering crypto-asset services, specifically those based outside the European Union or not authorised under the Markets in Crypto-Assets Regulation. The advisory cautioned that most crypto-assets remain volatile and risky, with limited consumer protection and exposure to fraud, scams, and misleading promotions. It urged consumers to check providers’ authorisation on the ESMA register, secure their private keys, and understand the risks before investing.