BETTER FINANCE Pushes for Stronger Crypto Protections
New proposals could force clearer risk disclosures for investors throughout the European Union.
Updated on Oct. 21, 2026 in Investing
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BETTER FINANCE has formally requested that the European Commission tighten investor protection rules for crypto-assets. The proposal aims to address current regulatory gaps that leave investors without compensation schemes or clear information regarding risk and accountability.
Why it matters
Current market standards often exclude crypto-assets from the deposit guarantees and investor protection schemes applied to traditional finance. This leaves households vulnerable to significant losses without a clear path for recourse if an investment fails.
Unlike traditional bank deposits or investment products, crypto-assets generally lack mandated compensation schemes or deposit guarantees. Information regarding risk and accountability remains fragmented and difficult for the average investor to navigate.
The players
BETTER FINANCE
An international non-governmental organization that acts as a watchdog for individual investors and savers in European financial markets.
European Commission
The executive branch of the European Union responsible for drafting legislation and setting regulatory standards for financial products.
The details
The proposal focuses on mandating a short, standardized information sheet for every crypto-asset sold. This document would explicitly list asset functions, associated risk factors, costs, and the parties legally responsible for the product. By requiring these disclosures, the plan aims to ensure that buyers understand their financial exposure before committing funds, closing gaps that currently allow sales without prior risk-assessment tests.
Timeline
October 21, 2026: BETTER FINANCE published its official response to the European Commission review.
Money Landscape
This move sits within an ongoing effort to bring the volatile crypto market under the same regulatory umbrella as traditional financial services. It follows the established precedent of the Markets in Crypto-Assets Regulation, aiming to close remaining gaps in transparency and liability.
If these rules are adopted, future crypto-asset purchases may require a mandatory risk-assessment and the review of a standardized disclosure sheet. Until such changes occur, households should exercise caution, as existing crypto products often lack the safety nets typical of insured bank accounts.
The takeaway
The proposed regulations aim to demystify crypto-assets by forcing clear, standardized disclosures on all providers. Before making any investment, consider discussing the risks of unregulated assets with a qualified financial professional to ensure they align with your household budget and goals.
Further reading
For more on managing risks in your portfolio, visit our guide on Investing.
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?
