Regulatory Alerts2025-01-21
Investigation into Advertising Statements and Cost Information Provision by CASPs
The Dutch Authority for the Financial Markets (AFM) conducted exploratory research in 2023 and 2024 to assess whether Crypto Asset Service Providers (CASPs) comply with MiCAR requirements for correct, clear, and non-misleading advertising and cost disclosure. The investigation revealed significant deficiencies, including inadequate risk warnings, misleading representations of historical returns and staking benefits, and the lack of prominent, accessible fee schedules on public websites. The AFM warns that these findings may constitute violations of MiCAR and urges CASPs to immediately align their marketing and informational practices with regulatory standards to protect consumers.
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