As detailed in our previous article, the European Commission released a framework, dubbed as the Digital finance package, intending to regulate Cryptocurrency industry and boost its financial competitiveness and become a global standard-setter in this field.

Last week’s article described what the EU’s new effort to regulate cryptocurrencies and crypto-assets is, and what it means for the crypto ecosystem as a whole. Since, the European Commission opened a call for feedback on the adopted acts and framework, asking for the opinion of the public. This call is open until December 1st, 2020.

Analysis by the European Federation of Financial Advisers and Financial Intermediaries (FECIF) and Cattaneo Zanetto & Co:

• The proposal for a regulation on crypto-assets refers to the importance of crypto-assets as one of the main applications of blockchain technology in finance. Specifically, this proposal concerns crypto-assets that are not covered by the current EU Financial Services Legislation. Four are the main objectives of the proposal: 

1. Legal certainty.
2. To clearly define the regulatory treatment of all encrypted activities that are not covered by existing financial services legislation. 
3. To support innovation, to introduce adequate levels of consumer and investor protection and market integrity. 
4. To ensure financial stability.

• The proposal for a directive on cyber-attacks, on the other hand, aims to support the previous proposal on the regulation of crypto-assets, in addition to referring to proposals for regulations related to a temporary regime on the DLT market infrastructure and digital operational resilience. The particular reason for this proposal for a directive is that, to ensure legal certainty concerning crypto-assets, and to achieve the objectives of strengthening digital operational resilience, it is necessary to establish a temporary exemption for MTFs and to amend or clarify certain provisions of existing EU directives on financial services.

All feedback received will be summarised by the European Commission and presented to the European Parliament and Council intending to feed into the legislative debate. 

UPDATE: We are now also receiving your feedback to send to the EU through this initiative! If you have any thoughts that you’d like to contribute, email us at [email protected] before the deadline. We’ll make sure your voice is heard!