The EU market regulator said the crypto could cause ‘greater stability issues’ as the market grows

The European Securities and Markets Authority (ESMA) has warned that crypto will further threaten the stability of the traditional financial market as the industry grows and becomes more aware of traditional financial players.

“We can’t stop the future sharp collapse in crypto prices can have effects on our financial system,” ESMA executive director Natasha Cazenave Says In an April 8 statement on the committee of economic and monetary affairs.

Cazenave noted, however, that crypto currently provides only 1% of global financial properties and has not been significant enough to cause the major “spillover effects” to traditional financial markets.

He warned that the relationships between the crypto and traditional markets were growing rapidly-especially to more crypto-friendly to us-and called closer monitoring.

“Crypto-assets markets are rapidly emerging, in a often unpredictable way, and we need to guard these developments,” Cazenave said, added:

“The excitement, even in small markets, can come from or cultivate greater stability issues in our financial system.”

Cazenave’s concerns ranged from spot crypto exchange-traded funds and stablecoin use to hacks, scams and scandals-highlighting the recent $ 1.4 billion bybit exploitation and The fall of the FTX In November 2022.

Today at the Econ Committee, the role of crypto properties is discussed in connection with the stability of the financial market. The European Central Bank (ECB) and the European Securities and Markets Authority (ESMA) are present.

I raised a critical question about digital euro.… pic.twitter.com/kst7frbhff

– No erroglu (@engineroglu_fw) April 8, 2025

The European Union has already implemented some steps to protect against crypto risks, especially the Markets in crypto-assets (MICA) regulation combined last year.

While Cazenave said Mica marked a “breakthrough” for crypto regulation, she added that there was no “thing like a safe crypto asset” and more policies could be implemented to ease future risks.

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His comments come as both crypto and the stock markets have been experienced Double-digit falling In the past few weeks as the Trump administration continues to follow them Tariff plans.

Europe has been deprived of us in crypto adoption

As the crypto adoption accelerated in the US, Cazenave noted that more than 95% of European banks remain on the edges, with no one involved in crypto-associated activities.

However, retail participation increases, with approximately 10% to 20% of European investors having exposure to crypto, In accordance with the growing global interest, Cazenave said.

Most reports that measure US Crypto Adoption It is suggested that the accumulation of adoption is between 15% and 28% of the population.

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