European Commission adopts digital financing package for crypto and blockchain
Europe is one step closer to achieving a concrete legal framework for digital finance.
The European Commission is moving to provide more clarity and legal certainty for the cryptocurrency industry in its member states.
On September 24, the EC officially adopted a new digital finance package that includes digital finance and retail payment strategies, as well as legislative proposals on crypto assets.
The EC said the new package represents the first time the authority has proposed new legislation on crypto assets.
As part of the new legislative proposals, the EC pays special attention to stablecoins, a type of cryptocurrency that links the value to an external reference such as the US dollar or an algorithm.
Specifically, the proposals aim to introduce stricter requirements for stablecoin issuers in terms of capital, investor rights and supervision, the proposal’s text reads.
There, the EC aims to require stablecoin issuers to complete authorization from a competent national authority if the outstanding amount of stablecoins exceeds 5 million euros ($ 5.8 million).
The authority also wants to force issuers of crypto assets to publish a white paper with mandatory disclosure requirements. Small and medium-sized companies will be exempt from the publication of said white paper when the total consideration of the offer of crypto assets is less than 1 million euros (1.1 million dollars) during a period of 12 months.
The exclusion ensures that “the requirements imposed on crypto asset service providers are proportional to the risks created by the services provided.”
According to the authority, the new measures will be crucial to support the economic recovery of the EU, since they will unlock new ways of channeling financing to European companies. “By making the rules safer and more digital for consumers, the Commission aims to drive responsible innovation in the EU financial sector, especially for highly innovative digital start-ups,” the EC noted.
The package is now subject to consideration by the legislative counterparts of the EC, the European Parliament and the European Council.
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