Yigit Taha OZTURK 
The EU markets watchdog ESMA warned that as the crypto industry grows and becomes more interconnected with traditional finance, it could pose significant risks to financial stability. Speaking on April 8, ESMA’s Executive Director Natasha Cazenave told the Economic and Monetary Affairs Committee: “Future sharp drops in crypto prices could have spillover effects on our financial system.”
Cazenave emphasized that crypto currently represents only 1% of global financial assets and is not yet a major threat. However, she pointed to rapidly increasing connections, especially in the more crypto-friendly US.
Concerns include spot crypto ETFs, stablecoin usage, hacks, scams, and high-profile collapses like the $1.4B Bybit exploit and FTX’s 2022 downfall.
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To counter such risks, the EU has already rolled out the MiCA (Markets in Crypto-Assets) regulation. While Cazenave called MiCA a breakthrough, she stressed that “there is no such thing as a safe crypto-asset,” and additional regulations may be needed.
Europe Still Hesitant on Crypto
According to Cazenave, over 95% of European banks remain uninvolved in crypto-related activities. However, retail interest is increasing, with an estimated 10% to 20% of investors in Europe having some crypto exposure—reflecting broader global trends.
These warnings come amid recent double-digit drops in both crypto and stock markets, as macroeconomic uncertainties persist.
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