Crypto investment agency 21Shares has called on the European Securities and Markets Authority (ESMA) to develop standardized regulations for the inclusion of cryptocurrencies in funds for collective investment in transferable securities (UCITS), according to a statement on Oct. 7. The company noted that current practices lack consistency, with Germany and Malta allowing UCITS funds to include cryptocurrencies, while Luxembourg and Ireland do not.

Mandy Chiu, head of financial product development at 21Shares, explained that this fragmented approach limits retail investors’ ability to fully leverage cryptocurrencies: “By providing a consistent set of rules across Europe, ESMA can open up new ways for investors to diversify and add value to their portfolios in an environment that is regulated and designed to protect investors.” Chiu also noted that clear and consistent rules will help stabilize the market while promoting growth in the cryptocurrency industry.

Therefore, 21Shares urged ESMA to develop comprehensive guidelines to allow all EU member states to invest indirectly in cryptocurrencies, which would protect investors and broaden the channels for cryptocurrency investment. (CryptoSlate) #zachxbt