The European Commission is planning to develop a regulatory framework for cryptocurrencies. This was revealed in a press release by the commission on the 24th of September.
The bill, called the “Regulation on Markets in Crypto Assets,” will provide information on digital assets and the different tokens. Also, there would be guidelines for the relationship between the token holder and the issuer. The bill aims to ensure consumer security.
Also, the new regulatory framework will state the procedures for complaints. This suggests that there would be a laid-down approach for investors to file complaints against projects.
In addition, the commission proposed a regulatory sandbox that will allow companies to test blockchain technology. This will enable companies to gain experience and ensure they can deal with the rules and regulations.
According to the press release, the European Commission is supporting the digitization of assets through tokenization. The vice president for the Economy that works for People commented on the proposal:
“the future of finance is digital…Technology has much more to offer consumers and businesses and we should embrace the digital transformation proactively…An innovative digital single market for finance will benefit Europeans and will be key to Europe’s economic recovery….”
Upon the approval of the proposal, the framework will be applicable in the 27 member states.
Before now, finance ministers from Germany, Italy, Spain, France, and the Netherlands called on the European Commission for stablecoin regulation. According to a Reuters report, the finance ministers jointly asked that stablecoins should not be allowed in the 27 member states without a regulatory framework.
Image Credits: Pixabay
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