Joint Warning by European Supervisory Authorities on Crypto-Assets

On 6 October 2025, the European Supervisory Authorities- namely the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA), and the European Securities and Markets Authority (ESMA)- issued a joint communication concerning crypto-assets.

The communication consists of two separate documents. The first focuses on outlining the risks associated with crypto-assets, while the second provides a concise set of key information regarding crypto-assets.

What Did the Supervisory Authorities Warn Against?

In the document warning about the risks associated with crypto-assets, the supervisory authorities drew attention to:

• key questions that investors should consider before investing in crypto-assets, focusing on fundamental aspects such as secure access and safekeeping of crypto-assets;
• major risks linked to crypto-assets, including high price volatility, liquidity risks, the prevalence of fraud, the complexity of crypto-asset-based products, and the limited level of consumer protection, particularly where services are provided by entities operating under regulatory frameworks other than regulation on on markets in crypto-assets: “MiCAR”.

The communication is fully consistent with the earlier joint warning on crypto-assets issued by the European Supervisory Authorities in March 2022.

Key Information on Crypto-Assets

The second document has a purely informational character. It includes:

• a summary of fundamental terminology related to the crypto-asset sector, including terms such as DLT, stablecoin, EMT tokens, NFT tokens, and utility tokens;
• a brief overview of exemplary categories of crypto-assets- including those subject to the MiCA Regulation (e.g., asset-referenced tokens- ARTs) and those excluded from its scope (e.g., non-fungible tokens- NFTs).

What does this mean for consumers?

The joint position of the European Supervisory Authorities should be viewed positively, as the increasing popularisation of crypto-assets as an accessible investment instrument simultaneously raises the risk of widespread fraud in the market.

Consumers should be properly informed prior to engaging in crypto-asset-related services- not only about the potential market abuses, but also about the ordinary investment risks inherent in this distinct class of assets. Undoubtedly, the publication of this communication aligns with the statutory supervisory objectives entrusted to the European authorities during the critical phase of MiCA implementation.

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