On the 11th of July 2025, the European Securities and Markets Authority issued a public statement warning investors of the ‘halo effect’ which can lead to overlooking risk when authorised crypto-asset service providers (CASPs) offer (un)regulated products and/or services. To avoid confusion about the safeguards attached to unregulated products and services, ESMA recommends that CASPs clearly disclose their regulatory status throughout the whole sales process, act in clients’ best interests, and ensure that all information is fair, clear and not misleading.
