negotiators European Parliament and the Council reached a tentative agreement.in the proposed regulation of the cryptocurrency market, This creates stricter standards to strengthen consumers’ protection against the risks associated with crypto-asset investments and fraud schemes.
“Recent events in this sector have highlighted the need for regulation at the European level”, The French Minister of Economy and Finance and the EU Presidency, Bruno Le Maire, emphasizing the EU’s role in setting digital standards.
This regulation, which is still needed, Approval of the official acceptance of the plenary meeting of the European Parliament and of the Council, It aims to protect investments, protect financial stability and increase the attractiveness of the European crypto-asset sector by providing protection for backed crypto-asset issuers, promoting so-called ‘stable coins’ and cryptocurrency trading venues.
The regulation is a first at European level, although it has precedents in some Member States. Its aim is to improve consumer protection, who currently have very limited rights, especially if transactions are carried out outside the EU.
This rule applies to service providers crypto assets comply with stricter standards for protect consumers and market abuse in connection with any transaction or service, such as market manipulation and insider trading.
Service providers whose parent company is on the list of third countries considered high risk EU anti-money laundering activitiesAs well as the list of non-cooperating jurisdictions for EU tax purposes, it will have to implement additional checks.
Regarding the so-called stable currencies, regulation issuers have asufficient liquid reserves to protect consumers and these will be overseen by the European Banking Authority.
The development of ‘tokens’ referring to a European currency will be limited to maintaining the EU’s monetary sovereignty; and Issuers of these assets must have a registered office in the EU to enable auditing and monitoring of bidsIt aims to provide legal certainty in the EU.
The interim agreement also reveals that cryptocurrency service providers will need a permit to operate in the EU, and national authorities will be responsible for issuing authorizations within three months. Service providers will also be required to report regularly to the European Securities Market Authority.
‘tokens’ or digital assets representing real purposes such as art, music or video will be excluded from the concept of crypto assets. In fact, the Community Manager should provide an assessment and, if necessary, a framework for the risks of this market within an 18-month period.
Also, it will force market operators declare data on their environmental footprints in accordance with technical standards to be developed by the European Securities and Markets Authority.. Information that the European Commission will then use to prepare a report on the environmental impact of crypto assets and set sustainability standards for the industry.
In order to avoid duplication of powers, this the new regulation does not interfere with the anti-money laundering legislation, Despite requiring the European Banking Authority to establish a public register of cryptocurrency service providers that do not meet the requirements.
Source: Informacion
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