the new French proposal

Key facts:
  • The ESMA would have the power to directly oversee cryptocurrency public offerings.

  • If the AMF proposal is implemented, ESMA’s practice in crypto regulation would be employed

That there is a single authority in the European Union for the regulation of cryptocurrencies is the new approach of the Financial Markets Authority (AMF) of France.

This proposal, which is led by the European Securities and Markets Authority (ESMA), was reflected in a document, which was based on the responses to a consultation carried out by the European Union, which disseminated the AMF during the current month under the title: “More European supervision and better regulation are key elements to build a true union of markets”.

ESMA is an institution that oversees markets in Europe, aims to improve the functioning of financial markets and promote cooperation among the member States of the economic bloc.

The four-page brief says: “granting ESMA the power to directly monitor Crypto Asset Public Offerings in the EU (white paper scrutiny) and crypto asset service providers would create obvious economies of scale for all national supervisors and concentrate technical expertise efficiently, for the common benefit of Europe.”

The publication also points out that it is advisable to minimize the aspirations that the nations that make up the European Union may have in this regard. In this way, you can agree on a single regulatory framework that is managed by the ESMA and so all competences can be transferred to him.

The document then addresses the issue of ESMA governance, which it considers should be reviewed to allow a more European dimension in decision-making. In this regard, it explains that the current management framework of the supervisory authority of the European Union’s financial system is composed of national authorities, which limits decision-making to a broader scope. “It is a question of credibility for the European authority,” he adds.

For the above reasons, AIMF believes it is necessary to strengthen the role of the Board of Directors and the independence of the ESMA for the different decisions that must be made in this environment.

Meanwhile, the administrative structure, as well as the source of funding of the ESMA, must remain closely linked to its management, this means that members with a smaller vote will not be imposed as strict a financial obligation as those with greater decision-making power.

It considers that ” it is also important to ensure sufficient flexibility so that ESMA can adapt quickly to external market developments and finances. As well as important new projects, in order to properly fulfill its mission and cope with the increased supervisory powers.”

In the process of supplementing a single regulation

Later, the document notes that a single regulation should be supplemented which requires simplification of procedures in Europe and rationalization of financial regulation. In this way, greater efficiency will be achieved in the single market and for the European Union’s competitiveness on the world market.

To which he adds the following: “The choice of regulations instead of directives should be systematized by the Commission in the future, especially when financial products that benefit from a European passport are involved.”

The document adds that efficient European supervision is fundamental for the capital markets unionwhich must be implemented in conjunction with the establishment of an effective single regulation. This has not had the expected results through the attempts that have been made in legislative matters, the document notes.

It is worth recalling that last year, the European Commission proposed create a supervisory body for cryptocurrencies. The project would go into effect at the end of the year 2020, as CriptoNoticias reviewed on that occasion.

The project planned to set up a team of supervisors with national authorities and EU bodies. These teams would be chaired by the European Banking Authority (EBA), entity that would gain greater prominence in the control of the cryptocurrency sector in the region. Today, the Regulation of Cryptocurrency Markets is still under debate.

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