The EU plans to incorporate comprehensive crypto regulations by 2024 according to the latest reports that we have in our crypto regulation news.
The European Union or EU plans to incorporate blockchain and cryptocurrency regulation into the main procedures by 2024. Over the next four years, the economic union aims to create a fresh regulation framework that will promote the blockchain and digital asset usage for international money transfers according to the documents:
“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 […] It should also address the risks associated with these technologies.”
Finding that about 80% of the population transacts in paper money, the European Commission wants to see digital payments becoming common while still aiming to reach immediate transaction times as per the documents. The reports show that the commission has a desire for increased data access and financial activities availability while still aiming to reach increased efficiency. As per the Reuters reports, the fast transaction avenues will take over:
“By 2024, the principle of passporting and a one-stop shop licensing should apply in all areas which hold strong potential for digital finance.”
With the current COVID-19 pandemic still ongoing with no signs of stopping, the desire for digital payments across the globe is stronger than ever. Crypto assets have also become the talk of regulatory bodies with many countries aiming at central bank digital currencies to streamline their payments.
The European Union will need a more ‘’common approach’’ to regulating the crypto sector according to the finance commissioner Valdis Dombrovski. Dombrovskis is now ready to change tactics and to pursue the creation of a well-defined framework for the crypto regulations within the European Union. During his speech before the European Parliament in Brussels, the finance commissioner highlighted the need for Europe to have a standardized system of crypto governance:
‘’Europe needs a common approach on crypto-assets such as Libra. I intend to propose new legislation on this [cryptocurrencies].’’
Also, as recently reported in the Libra news, EU ministers demand new rules for stablecoins because they need to be heavily regulated within the region and they specifically called out Facebook’s Libra. Regulation is needed to keep the financial market stability and the proposed rules can affect the rollout of Facebook’s Libra.
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