The European Securities and Markets Authority (ESMA) issued a public statement warning investors about the ‘halo effect’. This effect can cause investors to overlook risks when crypto-asset service providers (CASPs) offer both regulated and unregulated products. ESMA is reminding CASPs to be vigilant about avoiding client confusion regarding protections for unregulated offerings. CASPs must clearly communicate the regulatory status of each product or service. This communication should occur in all client interactions and throughout the sales process. ESMA also reminds crypto-asset entities of their duty to act professionally and in clients’ best interests. All information, including marketing, must be fair, clear, and not misleading. The goal is to prevent misunderstandings and ensure investor protection. This guidance specifically addresses CASPs dealing with a mix of regulated and unregulated services. It emphasizes transparency in product and service classification.