France is pushing for centralized crypto regulation in the European Union

July 20, 2021

France’s government has come with a proposal to centralize the regulation of digital currencies in the European Union. It states that the European Securities and Market Authority, or ESMA, should be the one in charge of this.

Consequently, if enforced, this would establish a single authority over the crypto sector across the Euro zone and would bring uniform regulations across the union through ESMA, as suggested by the French securities regulator, ​​Autorite des Marches Financiers, or AMF.

The proposal made by the AMF’s states:

“Likewise, granting ESMA the power of direct supervision of public offers of crypto-assets in the EU (scrutiny of white papers) and of crypto-asset service providers would create obvious economies of scale for all national supervisors and concentrate expertise in an efficient way, for the common European benefit.”

ESMA is a Paris-based financial regulatory agency with interests to strengthen investor protection in the EU and improve the functioning of financial markets by fostering cooperation between member states. It was already a year ago they proposed an EU-wide regulatory framework for digital currencies.

With the AMF’s proposal, the experience ESMA has in regulating digital currency is an advantage they could benefit from. With regulation centralized, there would be legal certainty for digital currency businesses operating across the EU. The proposal concluded by stating:

“The above proposals are consistent with the principles of better regulation and, if endorsed and implemented with diligence and care by European institutions, would greatly contribute to enhancing the EU Single Market’s competitiveness, and the EU’s sovereignty and autonomy.”

The regulation of digital currencies has become a major point of discussion for governments across the world lately. This Monday, the United States Treasury Secretary set a meeting of the President’s Working Group on Financial Markets with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation to discuss the regulation of stablecoins in the country.

The post France is pushing for centralized crypto regulation in the European Union appeared first on iGaming.

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Author: Peter Siu

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