The European Capital Market Authority (ESMA), the EU regulatory authority and supervisor, which today issued a public statement that warns investors of the “Halo phenomenon” that can lead to risk violations when authorized encryption service providers (pins) offer both regulated services.
The statement It also reminds the Casps of the issues that must take into account when providing unjust products and services, considering that it should be particularly vigilant to avoid any customer confusion about protections associated with unjust products and/or services.
In order to avoid any fruits misunderstanding, it must clearly notify the regulatory status of each product or service to all customer interactions and at every stage of the sales process.
In addition, ESMA recalls the entities of encrypting their obligation to act fairly, professionally and in the interests of their customers, ensuring that all information, including marketing communications, is fair, clear and not misleading.