Comprehensive and Stream-lined Cryptocurrency Regulation to be Implemented by the EU by 2024
By Max Steadman – Cryptocurrency Speculator
The European Union (EU) plans to enact rigorous regulation on cryptocurrencies by 2024, two studies have recently unveiled. This follows five European finance ministers calling on the European Commission to create"very comprehensive and straightforward guidelines" on cryptocurrency trading.
EU Crypto Regulation
By 2024, the European Union plans to integrate cryptographic and blockchain technology into its key processes. According to two Reuters documents published on Friday, the EU aims to develop new rules over the next four years to streamline cross-border payments for those looking to buy and sell cryptocurrency. This will expedite the use of blockchain and digital currencies for international money transactions. The documents detailed:
“By 2024, the EU should put in place a comprehensive framework enabling the uptake of distributed ledger technology (DLT) and crypto-assets in the financial sector,” the documents said, according to the report. “It should also address the risks associated with these technologies."
According to a study by Reuters, this approach by the EU forms part of a broader initiative to promote a move towards digital banking, especially at a period when the pandemic is encouraging more people to buy cryptocurrencies likeBitcoin and become cash-free as a preferred option for transactions. The document also indicated that the EU Commission — the Executive branch of the European Union — will publish a law outlining how the current regulatory system will be enforced and more information on the implementation of new rules.
In addition to the new cryptocurrency plan, Valdis Dombrovskis, Executive Vice-President of
Economy and Finance of the European Commission, said that the Commission should also amend “the prudential rules for crypto-assets held by financial firms, which could force banks with these digital assets to hold more capital as a cushion, given the volatility and risks associated with these assets,”. The European Commission will issue the Digital Finance Plan along with its updated blockchain guidelines this month, according to Euractiv, a pan-European publication specialized in EU policies.
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