Recently, the Vice-president of the EU Commission stated that major changes are coming to the regulation of digital assets in the EU. This brings us to the fact that new cryptocurrency companies will be obligated to conduct their business activities according to this new regulation.
Thus, we will now explore in more detail the meaning of this update for the digital entrepreneurs.
The EU Commission decided to help potential investors and started an e-finance consultation. These and other areas covered by it:
- Increasing the stability of the EU’s financial system
- Stimulating the provision of modern financial e-services
- Making sure the regulation does not affect technology and innovation
- Facing challenges connected to fintech companies’ regulation in the EU
- Dealing with open banking and financial activities related to data processing.
Main goals of the consultation
Let’s examine the main objectives of the consultation.
· Compliance with the regulation
The current legislation has been questioned from the beginning of the cryptocurrency activities in Europe. That is why the Commission will be introducing an individual regime for crypto assets that do not fall under the current regulatory framework.
· Stricter rules for the high-risk crypto assets
The stablecoins regulation was also mentioned during the VP’s statement. The point of this remark was the need to separate in regulation the stablecoins issued by big market actors and those issued by smaller fintech companies. The former pose certain systemic risks and the distinction should help limit the dangers.
· Resilience of the fiscal system
In the next phase, the Commission is expected to work on the strengthening of the cybersecurity rules. This will be performed with the help of new principles of regulation for the EU’s financial institutions.
To inspect the level of success of the consultation, the Commission will reflect its results in the Digital Strategy that should be issued in the third quarter of 2020.
In case you still have uncertainties or questions about the topic of this article do not miss the opportunity to arrange a personal consultation on the crypto assets’ regulation in the EU. Legal experts from COREDO will be glad to assist you with the registration of the fintech company in the countries of the EU.