The top French financial markets regulator wants the European Union to change the way it oversees the digital currency and blockchain industry. It proposed a unified approach in the region, with one body in charge of formulating regulations for the rapidly growing industry.
In a recent speech, the chair of the Autorité des Marchés Financiers Robert Ophèle spoke on fintech and regulation, touching on the need to regulate blockchain and digital currencies. He believes that the EU region needs to begin regulating the industry soon as it’s growing at a parabolic rate.
Ophèle proposed that the European Securities and Markets Authority should be in charge of the digital currency industry. Speaking during the 5th Annual Fintech and Regulation conference, he stated:
“First, this would be the best way to guarantee a level playing field in the EU. Second, as this regulation is brand new, it is easier to provide ESMA with competence from the outset than if this is considered at a later stage. Moreover, it would make sense to gather all the expertise within the same authority, since the cost of entry in the crypto-world is quite high.”
The ESMA is a Paris-based financial regulatory agency. It strengthens investor protection in the EU, improves the functioning of financial markets and fosters cooperation between the member states.
Ophèle further called on the regulation of security tokens. The industry has been growing rapidly as investors seek more efficient ways to invest in traditional assets. Bitcoin SV has already established itself as the best blockchain network for tokenization.
The watchdog stated, “As already highlighted for security tokens, we need to ensure that all types of DLT can be used, private and public. Nor should we close the door on decentralized business models by prohibiting or overlooking them. In my opinion, we should favor an outcome-based approach, which means that business models capable of complying with the organisational rules, conduct rules and AML-CFT rules should be admitted.”
The Autorité des Marchés Financiers has been friendly to digital currencies, advocating for a moderate approach that promotes innovation. It has also cracked down on digital currency scammers that taint the industry’s image.
See also: CoinGeek Live panel, Digital Currency & Global Compliance: Tools & Tips for Exchanges, Wallets & Other Service Providers
New to Bitcoin? Check out CoinGeek’s Bitcoin for Beginners section, the ultimate resource guide to learn more about Bitcoin—as originally envisioned by Satoshi Nakamoto—and blockchain.