A group that advises the European Securities and Markets Authority (ESMA) – the EU’s securities watchdog – has recommended regulating most cryptocurrencies and ICO tokens under existing financial rules, but said more clarification is needed.

In a report dated Oct. 19, the Securities and Markets Stakeholders Group (SMSG) said that, since transferable crypto assets used in payments (such as bitcoin) are increasingly considered as investments, the related risks are very similar to those seen in the capital markets.

It therefore recommends that the ESMA should consider such assets under the EU’s MiFID II (Markets in Financial Instruments Directive II) regulations, which came into force in January.

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