The European organizer says symbolic stocks risk “investor misunderstanding”

Written by Elizabeth Hakroft

The European Union’s securities monitoring said on Monday that the assets that depend on Paris (Reuters) -the assets that depend on the Bliocine and that provide exposure to shares can lead to a “misunderstanding of the investor”, because it usually does not make the buyer a shareholder in the basic company.

The so -called symbolic stocks are a type of Blockchain asset that are associated with the stock price in a public company. Broker Robinhood has launched a symbolic stock of the European Union while Crypto Exchange Coinbase also made a boost to the emerging sector.

Natasha Casinaf, Executive Director of the European Authority and European Markets (ESMA), said at a conference in Dubrovnik that many high -tech companies have developed offers that give investors exposure to listed shares or Blockchain derivatives backed by shares of companies that are held through purposes. Individual companies were not called.

“These distinctive tools can always provide access and break, but usually do not give the rights of shareholders,” Cazenave said in an ESMA website.

She said: “… this can create a specific danger to the investor’s misunderstanding and emphasizes the need for clear communication and protection.”

ESMA fears for the World Exchange Union, which last week called on securities organizations to garbage on symbolic stocks, saying that they create new risks for investors and may harm the safety of the market.

Curd lovers say that the distinctive symbol will change the basic infrastructure of financial markets, by allowing assets such as bank deposits, stocks, bonds, funds and even real estate that will be traded as blocchain.

Cazenave said that the distinctive symbol can bring efficiency gains, but “most of the distinctive symbol initiatives remain small and largely liquid” so far.

(Participated in the coverage of Elizabeth Hakroft; Edit by Tommy Regeyry Wilkes and Ross Russell)