New Zealand, record seizure of 80 million euros from the Russian "king of cryptocurrencies"
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24 September 2020 It is the first proposal for a regulation developed by the EU Commission, which "will provide legal clarity and certainty for those who issue and supply crypto-assets", writes Brussels.
The intervention on digital finance announced today by the European Commission aims to bring regulatory order in the sector, which has seen the affirmation of cryptocurrencies among which the best known is Bitcoin.
The new rules will oblige traders to obtain authorizations from the monetary authorities of a Member State to be able to provide their services throughout the Union, and set a series of "safeguards" such as capital requirements, custody of assets, supervision, complaints procedure. for investors and sets their rights to the issuer.
The requirements will be more stringent for those who issue significant quantities of 'stablecoins' (cryptocurrencies that have a stable price because they are tied to a stable medium of exchange, such as gold or the US dollar) and suppliers of crypto-assets (such as platforms trading companies, portfolio managers), which must have a physical presence in the EU.
Suppliers, again under the proposal, will be subject to capital requirements, governance standards and the obligation to segregate their clients' assets from their own.
They will be supervised by the EBA, the European banking authority, because their instruments can pose significant risks to financial stability and consumer protection in many Member States.
Not least, the requirement of cybersecurity, with the respect of the technological requirements to avoid hacking risks.
Prudential and organizational requirements will also be established with respect to the rules on safeguarding client funds.
To ensure effective oversight, Member States will need to designate an authority to act as a 'contact point', even when oversight is divided between different competent authorities in cross-border cases.