UK braces for historic departure from the European Union
EU ready for historic cryptocurrency regulation reform
European Commission completes consideration of a new regulatory initiative
Lack of legal clarity hinders the development of a healthy cryptoasset market in the EU
New legislation should be presented as early as September
European Commission completes consideration of a regulatory initiative that will clearly consolidate the definition of cryptocurrency in European legislation.
According to IFC Review, the EU legislature is in the final stages of preparing the concept of the first digital currency on the continent.
In December last year, the European Commission launched a public consultation with the aim of creating a special mechanism designed to resolve the problems associated with cryptocurrency assets in the EU.
The initiative should clarify the legal status of digital assets and pave the way for innovation.
In June, the Vice President of the European Commission Valdis Dombrovskis emphasized that the lack of certainty in the legal aspect often acts as the main barrier to the development of a healthy and full-fledged crypto asset market in the European Union. In his opinion, this initiative is an excellent chance for Europe to strengthen its international position and subsequently set standards at the global level, while European companies can become the leaders in the race for new technologies in digital finance..
Over the past year, the European Commission has identified three main priorities under the proposed legislation:
- Assigning a clear definition to all types of cryptoassets
- Updating the second EU Directive “On Markets in Financial Instruments” to include cryptocurrencies
- Creating a Comprehensive Regulatory Regime for Blockchain-Based Platforms
Successful implementation of the law can provide an optimal legal framework for cryptocurrency companies that can build their business to benefit the European economy. Implementation of the plan will support digital finance in Europe in the long term and will be a historic event for the industry.
The current state of cryptocurrency regulation in the EU can be described as a piece of national legislation, where EU regulation covers cryptoassets only within the framework of existing laws.
And a new initiative should radically change this situation..
New legislation, tentatively due in September, will replace current national agendas, provide the certainty needed for crypto assets to thrive, and help create a single digital asset market in Europe..
About what difficulties new EU regulation can create for projects, BeInCrypto editors wrote at the end of June.
We will remind, earlier this month it became known that the Cabinet of Ministers of Ireland will vote to toughen legislation in the field of combating money laundering, including regulation of cryptocurrencies.
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