Cryptocurrency
EU Plans to Regulate Cryptocurrencies in Digital Finance Push
As reported on Bloomberg, “The European Union is taking a major step to regulate crypto assets in the bloc, seeking to protect its financial markets without depriving citizens and companies of the new technologies. “Under the initiative unveiled on Thursday the EU’s executive arm seeks to establish clear ground rules for cryptocurrencies, which often aren’t captured by […]
As reported on Bloomberg, “The European Union is taking a major step to regulate crypto assets in the bloc, seeking to protect its financial markets without depriving citizens and companies of the new technologies.
“Under the initiative unveiled on Thursday the EU’s executive arm seeks to establish clear ground rules for cryptocurrencies, which often aren’t captured by traditional rules and can leave investors without protection.
“The proposal, considered one of the most comprehensive anywhere, also seeks to regulate so-called stablecoins such as Facebook Inc.’s Libra, which has been treated as a wake-up call by regulators because it could potentially reach a large number of users and even threaten financial stability.
“’We should embrace the digital transformation proactively, while mitigating any potential risks,’ said Valdis Dombrovskis, an executive vice president of the European Commission, in a statement. ‘An innovative digital single market for finance will benefit Europeans and will be key to Europe’s economic recovery by offering better financial products for consumers and opening up new funding channels for companies.’
“Under the new rules, crypto firms like trading platforms would need a physical presence in the EU and become subject to capital requirements, the commission said. The most important stablecoins would be supervised by the European Banking Authority…