NOAH

The EU Markets in Crypto-Assets (MiCA) Regulation outlines several key risks associated with cryptocurrencies:

Market Volatility – Crypto-assets are highly volatile, with rapid price fluctuations that can lead to significant financial losses.

Fraud &amp; Manipulation – The lack of centralised oversight increases the risk of fraud, insider trading, and market manipulation.

Consumer Protection – Investors face risks due to inadequate disclosure, misleading information, and limited recourse in case of disputes.

Operational Risks – Cybersecurity threats, hacking, and technical failures pose risks to exchanges, wallets, and platforms.

Regulatory &amp; Compliance Risks – Legal uncertainties, evolving regulations, and cross-border compliance challenges create risks for businesses and investors.

Liquidity Risks – Some crypto-assets have low liquidity, making it difficult to trade or convert them into fiat currency quickly.

Stablecoin Risks – Risks related to asset-backed stablecoins, including reserve transparency, redemption guarantees, and systemic impact.

Environmental Concerns – High energy consumption in certain blockchain networks, particularly proof-of-work (PoW) systems, raises sustainability concerns.

1. Market Volatility – Crypto-assets are highly volatile, with rapid price fluctuations that can lead to significant financial losses.
2. Fraud &amp; Manipulation – The lack of centralised oversight increases the risk of fraud, insider trading, and market manipulation.
3. Consumer Protection – Investors face risks due to inadequate disclosure, misleading information, and limited recourse in case of disputes.
4. Operational Risks – Cybersecurity threats, hacking, and technical failures pose risks to exchanges, wallets, and platforms.
5. Regulatory &amp; Compliance Risks – Legal uncertainties, evolving regulations, and cross-border compliance challenges create risks for businesses and investors.
6. Liquidity Risks – Some crypto-assets have low liquidity, making it difficult to trade or convert them into fiat currency quickly.
7. Stablecoin Risks – Risks related to asset-backed stablecoins, including reserve transparency, redemption guarantees, and systemic impact.
8. Environmental Concerns – High energy consumption in certain blockchain networks, particularly proof-of-work (PoW) systems, raises sustainability concerns.

MiCA aims to mitigate these risks by implementing licensing, transparency, and consumer protection measures for crypto-asset service providers (CASPs) across the EU.