Thursday, November 26, 2020
Home Cointelegraph News European Commission adopts digital finance package for crypto and blockchain

European Commission adopts digital finance package for crypto and blockchain

The European Commission is moving to provide more legal clarity and certainty for the cryptocurrency industry in its member states.

On Sept. 24, the EC officially adopted a new digital finance package including digital finance and retail payments strategies, as well as legislative proposals on crypto assets. 

The EC said that the new package represents the first time that the authority proposed new legislation on crypto assets.

As part of the new legislative proposals, the EC pays special attention to stablecoins — a type of cryptocurrency that pegs value to an external reference like the United States dollar or an algorithm. 

Specifically, the proposals aim to introduce more stringent requirements for stablecoin issuers in terms of capital, investor rights, and supervision, the text of the proposal reads.

Therein, the EC aims to require stablecoin issuers to complete authorization by a national competent authority if the outstanding amount of stablecoins is above 5 million euro ($5.8 million).

The authority also wants to oblige crypto asset issuers to publish a white paper with mandatory disclosure requirements. Small and medium-sized enterprises will be exempted from the publication of such a white paper where the total consideration of the offering of crypto assets is less than 1 million euro ($1.1 million) over a period of 12 months. 

The exclusion makes sure that “the requirements imposed on crypto-asset service providers are proportionate to the risks created by the services provided.” 

According to the authority, the new measures will be crucial in supporting the EU’s economic recovery as it will unlock new ways of channelling funding to Europe’s businesses. “By making rules safer and more digital friendly for consumers, the Commission aims to boost responsible innovation in the EU’s financial sector, especially for highly innovative digital start-ups,” the EC noted.

The package is now subject to consideration by the EC’s legislative counterparts, the European Parliament and the European Council.

Popular Articles

Coinsquare files application to operate as regulated crypto exchange in Canada

Coinsquare, a Canadian cryptocurrency trading platform, has announced the appointment of Nicholas Thadaney and Wendy Rudd to its board of directors. The appointments follow...

Coinbase CEO Warns Exiting President Trump May Drop Crypto Wallet Regulation Bomb

Coinbase CEO Brian Armstrong has heard whispers that the departing Trump Administration may drop a huge crypto wallet regulation bomb on United States traders...

TA: Ethereum Starts Corrective Decrease, Why Recovery Could Be Limited

Ethereum formed a short-term top near $620 and started a sharp decline against the US Dollar. ETH price is correcting gains and it could...

Cambridge and Oxford teams compete in algorithmic crypto trading contest

More than one dozen teams representing the mathematics and computer science departments of Oxford and Cambridge universities are competing to build crypto trading algorithms...

Is Ripple’s Blockchain-Powered XRP Ledger Superior to SWIFT for Cross-Border Payments?

Ripple, compared to SWIFT payments system adopted by banks worldwide, may be a cheaper, more transparent, and more secure alternative for the future of...

Bitcoin fees remain low despite price surge but Vitalik says they could soar

Despite Bitcoin’s surge to re-test its 2017 highs, a combination of low on-chain transactions and diminished retail speculation has seen transaction fees remain low. The...