The Cyprus Securities and Exchange Commission (CSEC) warns on crypto-asset high risk amidst significant and sudden value rise last November, despite the upcoming application of the new MiCA regulation. The CSEC quotes European Securities and Markets Authority (ESMA), noting that MiCA does not eliminate all risks, as markets in crypto-assets are not yet regulated at European Union (EU) level.

"MiCA will start a new era of supervision for crypto-assets and related services as markets in crypto-assets are not yet regulated at European Union (EU) level," the CSEC said, adding that "many crypto-assets are highly speculative and volatile, with prices subject to sudden and extreme fluctuations, also overnight."

It also drew attention to the fact that MiCA’s safeguards are less extensive than those for traditional investment products and adds that clients may also not benefit from all protections immediately after MiCA enters into application. It also warned clients to "be very cautious when engaging with non-EU firms."