Europe: ESMA Warns of Growing Links Between Crypto and Financial Markets

The links between crypto and traditional finance are becoming significant enough to attract more attention from the European regulator. In its risk monitoring report published on September 10, ESMA calls for close monitoring of this interconnection. Tokenized stocks, DeFi and prediction markets are directly cited. The regulator does not yet speak of an established systemic risk, but rather new channels capable of transmitting a crypto shock to…