SW News spoke with Dr. Ebru Karpuzoglu about the implications for consumers.

By Elizabeth Howcroft PARIS (Reuters) -Blockchain-based assets which provide exposure to equities could lead to "investor misunderstanding", as they typically do not make the buyer a shareholder in the underlying company, the European Union’s securities watchdog said on Monday. So-called tokenised stocks are a type of blockchain-based asset which are linked to the price of a share in a public company. Broker Robinhood has launched tokenised stocks in the EU while crypto exchange Coinbase is also making a push into the nascent sector. The European Securities and Markets Authority (ESMA) executive director, Natasha Cazenave, said at a conference in Dubrovnik that several fintech firms had developed offerings that give investors exposure to listed shares or blockchain-based derivatives backed by corporate stock that is held through special purpose vehicles. She did not name individual companies. "These tokenised instruments can provide always-on access and fractionalisation but typically do not confer shareholder rights," Cazenave said in a speech published on ESMA’s website. "...this can create a specific risk of investor misunderstanding and underlines the need for clear communication and safeguards," she said. ESMA’s concerns echo the World Federation of Exchanges, which last week called on securities regulators to clamp down on tokenised stocks, saying that they create new risks for investors and could harm market integrity. Crypto enthusiasts say tokenisation will change the underlying infrastructure of financial markets, by allowing assets such as bank deposits, stocks, bonds, funds and even real estate to be traded as blockchain-based tokens. 3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. Cazenave said tokenisation could bring efficiency gains but "most tokenisation initiatives remain small and largely illiquid" so far. Is COIN part of an AI-powered winning strategy? ProPicks AI evaluates COIN alongside thousands of other companies every month using 100+ financial metrics. Using powerful AI to generate exciting stock ideas, it looks beyond popularity to assess fundamentals, momentum, and valuation. The AI has no bias—it simply identifies which stocks offer the best risk-reward based on current data with notable past winners that include Super Micro Computer (+185%) and AppLovin (+157%). Want to know if COIN is currently featured in any ProPicks AI strategies, or if there are better opportunities in the same space?

Federal regulators secure permanent industry ban and asset forfeiture in Click Profit business opportunity enforcement.

Federal regulators secure permanent industry ban and asset forfeiture in Click Profit business opportunity enforcement.

Learn how the Arab Medicines Agency ArMA is officially announced to harmonize pharmaceutical standards in Arab League states.

The CRA has filed a formal complaint against Sky Labs, LLC, citing multiple violations of Michigan's cannabis regulations, including improper sourcing and tracking of THCA isolate.