Security

EU Watchdogs Call For Wider Crypto Rules

Cryptocurrency and ICO rules at the EU level seem to be gripping tight. Two major European regulators have recommended a set of rules.

ESMA and its Recommendations

First, the European Securities and Markets Authority (ESMA) advised different institutions of the European Union including the Parliament, the Commission and the Council on areas related to cryptocurrency assets and initial coin offerings.

Although the sector is modest in size and currently shows no risks related to financial stability, ESMA highlighted the associated risks concerning market integrity and investor protection.

In addition, the report went against legitimizing cryptocurrencies on the pretext of a survey which indicated that the crypto-assets should be in line with anti-money laundering legislation.

According to ESMA:

Wider regulation of crypto-assets and related activities may have trade-offs, such as risking legitimizing crypto-assets and encouraging wider adoption.”

The watchdog recommended that there is a need to protect the capital markets by setting up appropriate regulatory frameworks.

The ESMA chair, Steven Maijoor, said:

 “Our survey of NCAs highlighted that some crypto-assets may qualify as MiFID financial instruments, in which case the full set of EU financial rules would apply. However, because the existing rules were not designed with these instruments in mind, NCAs face challenges in interpreting the existing requirements and certain requirements are not adapted to the specific characteristics of crypto-assets.”

EBA and its Recommendations

The second recommendation came from the European Banking Authority (EBA), which has asked the European Commission to examine if there is a need for unified crypto rules across the region.

A report was published on Tuesday by EBA which said that the asset activities related to crypto are not currently covered under the existing EU financial laws and since these activities are highly risky, there is an immediate need to enforce the proper rules to protect the interests of the investors.

Following this, EA has ordered to conduct a comprehensive analysis. The EBA’s executive director, Adam Fracas, said in a statement:

“The EBA’s warnings to consumers and institutions on virtual currencies remain valid. The EBA calls on the European Commission to assess whether regulatory action is needed to achieve a common EU approach to crypto-assets. The EBA continues to monitor market developments from a prudential and consumer perspective.”

Is the Crypto Industry in Europe in Danger?

The reports by the two watchdogs aim to tighten the cryptocurrency regulations in Europe. However, the ESMA report could prove to be advantageous for the industry if it is adequately acted upon. Let’s not forget that the EU has so far come up with welcoming cryptocurrency and blockchain regulatory policies which have made crypto hubs like Luxemburg, Liechtenstein and the Netherlands to flourish.

Related article:

Switzerland Set to Bring Changes to Regulatory Framework

Nikita Mittal

An avid technical writer with more than 8 years of experience, Nikita is an engineer by profession and writer by passion. She writes all things about the cryptocurrency and blockchain.

Related Articles

80 Comments

  1. I will immediately seize your rss feed as I can’t find your e-mail subscription hyperlink or newsletter service. Do you’ve any? Please let me understand in order that I could subscribe. Thanks.

  2. Caesars ofrece bonos de bienvenida, pero en su mayoría están destinados a los jugadores de casino, como los que depositan por primera vez, dentro de los cuales recibirá un bono del 100% en su primer depósito hasta $1,000. En cuanto a los bonos de apuestas deportivas, hay funciones de temporada para ciertos deportes y eventos deportivos que están disponibles para ayudar a impulsar las apuestas durante esas temporadas de apuestas y sus eventos. También hay Términos y condiciones de los bonos que son injustas, lo que podría causarte algún problema si decides aprovechar los bonos o promociones del casino. Debido a esto, te recomendamos que busques un casino con reglas justas o que, al menos, tengas muy en cuenta los Términos y condiciones del casino si decides jugar en él.
    http://dcelec.co.kr/uni/bbs/board.php?bo_table=free&wr_id=156535
    Jugar online en España es hoy en día más fácil que nunca. Ya no tienes que estar sentado delante de tu PC. Ahora puedes jugar desde un dispositivo móvil, así que ya no importa si vives en Madrid o Barcelona, o si estás en Salou o en Benidorm. Y para facilitarte las cosas, hemos buscado los mejores casinos online para jugadores españoles. ¿Principiante? Entonces sepa que el PlayUzu es uno de los casinos online de España más recomendados por sus consejos de juego. Haga clic y compruébelo. Feb 13, 2023 | Sin categoría Los 3 rodillos de siempre, las mismas animaciones y sonidos te trasladarán a otra época. Tragaperras que se han convertido en slots online como RF Angels, Mina de Oro o Santa Fe Mix, son ahora auténticos hits en el casino online de Paf debido a su sencillez, jugabilidad y sus juegos de bono. ¡Pruébalas ahora!

  3. “Your website is a testament to the power of passion and hard work. You’ve created something truly special here, and I know it will continue to inspire and educate people for years to come.”

  4. Can I simply say what a aid to seek out someone who actually is aware of what theyre speaking about on the internet. You undoubtedly know how one can convey an issue to mild and make it important. More folks need to read this and perceive this aspect of the story. I cant believe youre no more standard because you undoubtedly have the gift.

Close