Cryptocurrency and digital assets as a whole are dramatically gaining much needed attention in the EU member states. Recently, the announcement came that the EU would dedicate itself to implementing comprehensive cryptocurrency regulations by 2024. Meanwhile, the development of a European Central Bank Digital Currency (CBDC) is taking shape in France with the digital euro.
On Thursday 24 September, the European Commission announced a further step in creating a legal framework to regulate cryptocurrency. It is now introducing new strategies and legislative proposals in this regard, announced Cointelegraph.
The European Commission’s announcement is its first regarding a legislative framework for digital assets. They are to focus very much on the role of stablecoin. With regards to stablecoin, the new regulations aim to create special requirements for capital, investor rights, and other proprietary rights related to cryptocurrency.
EU News further reported that the digital finance package comes after broad consultations and was officially adopted on 24 September. The package seeks to broaden innovation in the EU financial sector and introduce the revolutionary concepts of digital assets to a larger audience. It also embraces the EU’s vision for a fully digitalised system in years to come. The EU hopes the new package will bridge the gap between the nascent yet vibrant digital finance startups and the more traditional banking and financial centres of the continent.
Meanwhile, Ledger Insights reported that in dealing with cryptocurrency primarily, the new regulatory framework will also delve into the role of artificial intelligence, software investment, and cloud computing. It will also deal very firmly with ensuring a stable digital transformation. It aims to do this by protecting consumer rights and financial stability, in addition to addressing cybersecurity concerns.
The EU has thus initiated their process for a full regulation of cryptocurrency and blockchain-related assets. The body hopes to complete legislation regarding these assets by 2024.
In addition, the European Central Bank recently announced its skepticism about stablecoin in the economic zone, warning of its flaws.