European Union: EC proposal on regulation of crypto markets including authorisation mechanism for service providers
Description
EC proposal on regulation of crypto markets including authorisation mechanism for service providers
On 24 September 2020, the European Commission published the proposal on markets in crypto-assets to harmonise the legislative framework for the issuance and trading of crypto tokens to protect consumers and investors from market instability, fraud and money laundering. Under the proposal, the issuers of crypto-assets will have to register with designated authorities in the Member State and obtain authorization to operate in the single market. The entities registered as credit institutions or the value of the offered crypto-asset does not exceed EUR 5 million are exempt from this requirement. The issuers of crypto-assets will have to provide information regarding their capital, technical features of the digital good, security protocols and the draft whitepaper in order to obtain a licence to operate. The proposal now goes to the European Parliament and Council for approval.
Original source