The EU Commission has presented far-reaching proposals on how a uniform legal framework for crypto currencies and related asset classes could look like. Brussels seems to want to regulate Stablecoins in particular very strictly.
168 sides long is the document, in which the European commission explains, how it wants to react to the increasing spreading of crypto currencies. The key point is that instead of national regulations, an EU-wide uniform legal framework should be striven for. The admission of market participants such as crypto exchanges in one EU state should then allow transactions throughout the Union. On the other hand Brussels demands, offerers of crypto currencies and associated services would have in the future regulations such as proof over own capital funds, information to the custody technology and the possibility of complaint procedures to fulfill. Which the commission calls “custom-made rules”, might not meet however everywhere in the Kryptoszene with applause.
EU takes private Stablecoins into its sights
Obviously a particular thorn in the side of the rule keepers are private Strablecoins like Tether (USDT). They are mentioned almost 120 times in the position paper and are in principle classified as a risk to currency sovereignty and stability of the financial system. For this reason, the paper recommends particularly strict regulations and at the same time wants to create the option of banning individual stablecoins throughout Europe in the event of non-compliance. Although no concrete names are given, it is clear to experts that Facebook Libra is resonating with these proposals. However, it should also be kept in mind that the European Central Bank is increasingly willing to introduce a state-supported E-Euro as a CBDC (Central Bank Digital Currency).
EU strives for a sandbox for crypto start-ups
Now Brussels often has the reputation of stifling innovation through regulation. In things crypto industry the European Union commission wants to counter this offensively and suggests expressly: For start-ups in this sector, there should be so-called “sandboxes” in which projects can develop without being restricted by existing rules from the start. Owing to such overtones the industry association Bitkom welcomes the suggestions and paints out, the European Union can take over a “world-wide role of the pioneer” with the Krypto regulation. As long as the package remains balanced, it could lure crypto companies into the EU.
Conclusion: Stimulating topic of regulation for the crypto industry
Before approximately one year ago there were still rules for the prevention of money laundering, which caused criticism in parts of the Kryptoszene. But fears, by the rules the Kryptobranche from Germany would move, did not fulfill themselves. On the contrary: Large crypto stock exchanges such as Binance and Coinbase developed branches in this country and banks enter slowly into the new line of business.
Thus it remains first a question of faith: Does one want to leave the crypto market to a large extent unregulated and not punish thus also unserious participants Or are rules for consumer protection not therefore meaningful, because they place so the topic Bitcoin and CO. up to the Tokenisierung of assets on obligatory bases From the point of view of business, it is a balancing act that the EU has to master: On the one hand, not hindering innovation, on the other hand, creating legal certainty. The final word has probably not yet been spoken here.
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