Home » Business » European Commission Presents Legislation Regulating ‘Crypto Assets’ – IT Pro – News

European Commission Presents Legislation Regulating ‘Crypto Assets’ – IT Pro – News

The European Commission on Thursday published the proposal for a regulation on markets for crypto assets. With this, the EU wants to strictly regulate the use of stablecoins such as Facebook’s Libra.

The proposed regulation on markets for crypto assets describes that parties offering ‘crypto assets with a significant’ asset-backed ‘component, or stablecoins, must meet strict requirements in terms of capital, investor rights and supervision. The European Commission speaks, just like the Nederlandsche Bank, for example, not of cryptocurrency because the institutions do not see it as currency, but as ‘a digital representation of values ​​or rights that can be stored and traded electronically’.

The regulation is intended to provide parties that issue and offer crypto assets legal clarity and legal certainty for the European market. Among other things, they can offer their services throughout the EU with a single license, which is what the European Commission does passporting calls.

The Commission also intends to allow experiments in a controlled environment for crypto asset trading and transaction settlement. By temporarily deviating from existing rules, regulators can gain experience with blockchain techniques and look at the impact on investor protection, market integrity and financial stability.

The proposal still has to be approved by the governments of Member States and the European Parliament before it becomes final. That will take at least a year.

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