European Securities and Markets Authorities suggests new crypto rules
It appears that the day where cryptocurrency rules will become standard is not too far off the horizon. This was bandied about by Steven Maijoor, Chairman of the European Securities and Markets Authority who claimed that crypto assets are there to help investors and not to hinder them.
Maijoor insisted that where crypto assets do not qualify as financial instruments, there is a major concern that the absence of applicable financial rules leaves consumers exposed to considerable risks.
Maijoor continued by saying that digital assets were probably on the wrong side of Europe’s securities laws regulations. He indicated that US states differ in their opinion of whether virtual currency companies should have money transmissions licenses. At the same time, as long as they are not fraudulent, direct transactions of cryptocurrencies are currently not being monitored by the federal government.
Maijoor continued his speech by insisting that cryptocurrencies should be regulated and this was something which most European jurisdictions agreed upon. A country which is particularly focused on the regulation aspect is Malta, where there has been considerable movement in this regard although so far there is no real clarity on how the country is moving to attract business in this field.
“This makes it plain to see that we cannot legally qualify crypto-assets via a ‘one size fits all’ approach,” Maijoor added.
He also indicated that organisations should raise cash in return for digital currency and these were new rules which he wanted to apply. Digital currency would then be used to make purchases and would fluctuate in value. The same digital assets would provide utility or consumption rights. This also includes Bitcoin Core (BTC) which could be used as a means of exchange.
When investors have looked on securities as speculative investments, there is no consensus in the United States, although regulators have taken action. The aim is to prevent substantial risk to consumers. Violating of federal securities laws is a crime chargeable by the Securities and Exchange Commission and this would mean that the United States would need to be more involved in these matters.
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