Friday, November 27, 2020
Home Blockchain News European Commission Eyes Crypto Regulatory Framework with New Digital Finance Package

European Commission Eyes Crypto Regulatory Framework with New Digital Finance Package

The European Commission (EC) has officially unveiled a digital finance package that highlights legislative proposals on crypto assets and digital resilience.

The EC’s proposed regulatory framework seeks to offer more clarity about the crypto space in its member states.

Stablecoins might be widely adopted

The proposal stipulates the urge for a sound legal framework for crypto assets as current EU financial services laws have previously left them out.

The commission noted that more stringent requirements might be necessitated for stablecoins as they have the likelihood of being widely adopted. As a result, a bespoke regime for stablecoins and crypto assets should come in handy in areas like wallet services and crypto exchanges.

As per the proposal:

“The bespoke regime for crypto-assets will ensure a high level of consumer and investor protection and market integrity, by regulating the main activities related to crypto-assets.”

Stablecoin issuers are expected to be slapped with tough measures in terms of investor rights, capital, and supervision.

Stemming crypto-related fraud

The European Commission views the digital finance package as a stepping stone towards economic recovery because it aims to safeguard its financial markets without compromising new technologies like cryptocurrencies.

The EC asserted:

“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 proposed operational and governance requirements are expected to be instrumental in addressing crypto-related theft and fraud.

The commission added:

“The bespoke regime will introduce specific requirements on e-money tokens, significant e-money tokens, asset-referenced tokens and significant asset-referenced tokens in order to address the potential risks to financial stability and monetary policy transmission these can present.”

Recently, Christine Lagarde, President of the European Central Bank (ECB), acknowledged that a CBDC or digital euro would most likely work in tandem with fiat currency, not replace it.

Image source: Shutterstock

Popular Articles

Yearn Finance (YFI) Climbs 16% Despite Crypto Bloodbath Elsewhere

Yearn Finance’s YFI rose by up to 16 percent in just two days of trading, even though its peers across the cryptocurrency market bled. The...

Chinese police seized crypto assets worth $4.2B today from PlusToken Ponzi

The PlusToken controversy, which has led to the arrest of 109 individuals so far, has also reportedly resulted in a titanic seizure of crypto...

The Transcendence Project Introduces a Highly Efficient VIM3-based Crypto Miner, More in Store

TELOS, which is part of the Transcendence project, has made great strides in recent times with new developments as it strives to create decentralized...

Why the Russia Prime Minister wants to “protect” Bitcoin and crypto users

Russia has enjoyed an on-and-off relationship with cryptocurrencies, with ever-changing regulations and official perceptions fluctuating between periods of yes crypto and no crypto. But a...

ChainLink Bouncing Off its 50-day MA Could Result in a Retest of $20

Quick take: Chainlink is once again at the $12 support zone This support area coincides with where the 50-day moving average currently lies According to MagicPoopCannon, if...

Exchanges outdo auctions for governments cashing in criminal crypto, says exec

Earlier this week, Lithuania's tax service, the Lithuanian State Tax Inspectorate, added $7.6 million dollars to the state budget through the sale of cryptocurrencies...