- The EU will launch comprehensive crypto regulation in 2024
- Five European finance ministers called for the establishment of stricter crypto regulation
- The European Commission will increase digital finance usage by 78%
Cryptocurrency News Today – the EU is reportedly planning to implement more comprehensive crypto regulation by 2024. This report came to light after five European finance ministers called on the European Commission to implement very strong and clear rules on crypto. A comprehensive crypto regulatory framework is expected to become active in four years, according to two different EU documents. According to the documents:
“By 2024, the European Union should implement a comprehensive framework that will enable the uptake of DLT (distributed ledger technology) and cryptocurrency in the finance sector. By the year 2024, one-stop-shop licensing and the principle of passporting should apply in all areas that hold potential for the digital finance industry.”
The European Commission Will Publish New Crypto Rules Later in the Month
The European Commission is set to publish the Digital Finance Strategy alongside a new set of rules on digital currencies later in the month. These changes will outline the Commission’s priority actions by 2024. Adding to the existing crypto proposal, Valdis Dombrovskis, the Executive Vice President of the European Commission (in charge of Economy and Finance) said the Commission may update the prudential rules for cryptos held by financial firms.
This could force banks holding digital tokens to hold more capital considering the high volatility and risks related to the asset class. The two documents add that the legislation will clarify the way the existing rules apply to crypto. It will also create new rules that will address the risks associated with digital assets. The documents add that the European Commission “wants to make it easy to share data in the financial sector in a bid to encourage competition.
The European Commission Will Increase Digital Finance Usage
The European Commission will increase digital finance usage because 78% of payments in the eurozone are currently done in cash. The new rules will be in place in four years so that new users can start to use financial services after identity and anti-money laundering checks have been completed. In the past week, five finance ministers representing France, Spain, Germany, Italy, and the Netherlands, called on the European Commission to implement strong rules in the upcoming crypto proposal for global digital assets like Facebook’s Libra token.
Via a joint statement, the finance ministers said stablecoins shouldn’t operate in EU countries until all legal, regulatory, and oversight issues have been tackled. According to Minister Bruno Le Maire, French Finance:
“We are waiting for the European Commission to issue very strong and clear crypto rules to avoid the misuse of virtual currencies.”