AFME Advocates for Common Crypto-Assets Approach in Europe
In a new report published on November 14, the Association for Financial Markets in Europe (AFME) has called for a common approach in the regulation of crypto-assets in the common currency area of the European continent.
Five Key Recommendations
The AFME represents the leading global and European banks and other important capital market players. The new report by AFME outlines five recommendations for achieving supervisory convergence in regulating crypto assets across Europe.
The primary recommendation among the five is to establish a pan-European crypto-asset classification scheme. This can bloster a common understanding of various terms and activities relating to crypto-assets in financial services. On this point, AFME voiced the recent argument by German banking association Bankenverband; which likewise claimed that a lack of clarity regarding crypto’s status as currency or asset is contributing to confusion over taxation and other regulatory matters.
James Kemp, AFME’s managing director and head of technology, noted that:
'There has been a rapid rise in the development of crypto-assets […] however, to realise those benefits, it is increasingly important that crypto-asset regulation is coordinated at the regional and global level to foster innovation, while promoting financial stability and ensuring a level playing field.”
Furthermore, the five key recommendations made by the taskforce include establishing a pan-European crypto-asset classification scheme; setting “clear expectations” on issuing crypto-assets; applying “activities-based and technology agnostic regulation”; using existing regulation with amendments “if required”, and prioritizing “convergence” of regulatory frameworks with global and regional initiatives.
In conclusion, Brussels-based think tank Bruegel called on European Union finance ministers to enforce clear and uniform regulations for cryptoassets across European Union (EU) member states. Furthermore, he argued that while new EU rules on money laundering will eventually tighten loops; on market participants such as crypto exchanges by 2020,; regulatory oversight is in practical terms largely left to the state authorities.
About The Author
Mary BrendahMy first love is music – then goes writing. I don’t write fiction, I analyze bulls and bears in markets. I call it my jungle, the digital jungle of crypto and chains.
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