BETTER FINANCE Demands Stronger Crypto Asset Protections
The advocacy group is calling for standardized disclosure requirements to improve investor safety across European crypto markets.
Updated on Oct. 21, 2026 in Investing
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BETTER FINANCE has formally requested that the European Commission implement stricter investor protections for crypto-assets. The organization highlights significant gaps in transparency and accountability that currently leave individual investors vulnerable.
Why it matters
The lack of standardized information and compensation schemes makes it difficult for retail investors to assess risks or identify liable parties when investments fail. Strengthening these regulations could clarify accountability and ensure market participants are better informed.
BETTER FINANCE proposed the creation of a mandatory standardized information sheet detailing asset function, risk factors, costs, and responsible parties for all crypto-assets. These requirements aim to bridge current gaps where essential documents are often unavailable.
The players
BETTER FINANCE
This is a non-governmental organization that acts as an independent European advocate for the interests of individual financial services users and investors.
European Commission
This is the politically independent executive arm of the European Union that is responsible for proposing legislation and implementing decisions.
The details
The group argues that crypto-assets currently operate without essential investor compensation schemes or deposit guarantees. Furthermore, they note that many investors can purchase assets without undergoing mandatory risk-understanding assessments, exacerbating the potential for financial loss.
Timeline
October 21, 2026: BETTER FINANCE published its official response to the European Commission review.
Market Dynamics
This proposal marks a direct effort to influence and strengthen the current review process of the Markets in Crypto-Assets Regulation. The initiative reflects a broader trend of institutional pushback against the unregulated nature of digital asset markets.
The proposed regulations could eventually require crypto platforms to provide clear cost and risk disclosures before you make an investment. This would provide retail investors with greater transparency and a clearer understanding of who is responsible if a trade goes wrong.
The takeaway
Advocacy groups are increasingly pushing for crypto markets to adopt the same documentation standards required of traditional financial products. Investors should remain cautious and seek out their own risk assessments until standardized protection schemes are fully implemented.
Further reading
Learn more about the latest shifts in Investing to understand how these proposed rules could change the European financial landscape.
Source note: This article includes information reported by BETTER FINANCE.
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Should crypto-asset investments carry the same legal deposit protections as traditional bank accounts?
