21Shares Asks EU for Unified Crypto ETP Legislation

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The cryptocurrency issuer 21Shares has called on regulators in the European Union to implement a standardized regulatory framework for including cryptocurrency in investment products.

In a letter to the European Securities and Markets Authority (ESMA) on October 7, 21Shares urged for adjustments to be made to the current rule so that crypto assets can be included in Undertakings for Collective Investment in Transferable Securities (UCITS) funds, which are designed for retail investors.

The current regulations regarding crypto inclusion in these types of funds across EU countries are fragmented and inconsistent, causing confusion for investors.

While some countries like Germany and Malta allow UCITS funds to hold crypto assets, others like Luxembourg and Ireland do not.

21Shares believes that a standardized framework would bring clarity and consistency for both retail and institutional investors, provide consistent investor protection, and align Europe with other markets such as the United States and Hong Kong.