Europe to oblige cryptocurrency issuers to obtain crypto passports – Reuters
The EU intends to create a single regulatory framework for the member states of the union
Cryptocurrency issuers will need to obtain crypto passports for the legal circulation of assets in the EU
The Russian analogue of the regulatory “sandbox” only harms the development of the fintech industry, according to RACIB
International consortium of news organizations developing transparency standards.
European Commission intends to create special passports for issuers and service providers in the field of digital assets
Europe will create a regulatory field in which all cryptocurrency-oriented companies will be required to receive special crypto passports, writes Reuters.
What exactly such passports will represent is not yet clear. Nevertheless, it is already known that in order to access the single European market, crypto projects will have to meet a number of requirements prescribed by the commission, including:
- the size of the reserve capital;
- safeguarding safeguards for assets;
- book of complaints for investors;
- written rights of investors in relation to issuers of digital assets.
Uniform legal norms
Requirements for stablecoin issuers will be even tougher in terms of capital, investor rights and regulation, Reuters notes.
With the help of crypto passports, the European Union (EU) intends to create a unified regulation, replacing the national rules introduced in some EU member states. Also, the EU will consider the possibility of updating capital requirements for cryptoassets owned by financial companies.
In addition to introducing uniform regulations, the EU plans to develop a special sandbox for cryptocurrency projects, in which developers can experiment outside the regulatory field.
Recall that a similar “sandbox” was formed in Russia in April 2018. However, the domestic regulatory platform will not allow shaping the development of the fintech industry in the country, says President of the Russian Association of Cryptocurrencies and Blockchain Yuri Pripachkin.
“Unfortunately, I believe that this [the position of the regulator] is not just sabotage, it is a deliberate policy of the central bank aimed at depriving Russia of a place in the digital economy,” he added..
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