European regulators warn that cryptocurrencies may threaten financial stability

ChainCatcher news, according to Cointelegraph, the Executive Director of the European Securities and Markets Authority (ESMA), Natasha Cazenave, stated to the Economic and Monetary Affairs Committee on April 8 that as the cryptocurrency industry grows and deepens its connections with traditional financial institutions, a sharp decline in cryptocurrency prices in the future could have a ripple effect on the overall financial system. Although crypto assets currently account for only 1% of global financial assets and do not yet pose a significant "spillover effect," their rapid development, especially in the crypto-friendly U.S. market, is noteworthy. The EU has implemented the Markets in Crypto-Assets Regulation (MiCA) to address risks, but Cazenave emphasized that "there are no absolutely safe crypto assets," and more rules may be needed to mitigate future risks. Currently, about 10%-20% of European investors hold crypto assets, while 95% of European banks have yet to enter this field.