ESMA, one of the supervisory authorities of the European Union, announced in its report published earlier this month that “debates are ongoing” regarding the proposed legal framework for cryptocurrencies and the obligations that stablecoins should have.
- Shared by the European Securities and Markets Authority Trends, Risks and Weaknesses According to the report titled, the fact that cryptocurrencies fall outside the current legal framework of the EU, protection of investors raises question marks.
- Established with the aim of establishing a transparent and efficient securities market at the European Union level, ESMA aims to protect investor rights and financial stability.
- While referring to the fluctuation of crypto money prices in the first half of this year, investors are no longer “to take more risks” started and a market of excess may have occurred.
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“We expect this long-running period, which exposes individual and institutional investors to the risk of a correction in the market, to continue in the future.”
- “Receiving great interest from both individual and institutional investors” Total market capitalization of cryptocurrencies, from the end of 2020 to the present, approx. triple growth showed.
Stablecoins scrutinized
- ESMA provides financial services for decentralized financial products. disintermediates, makes it accessible 24/7 and resistant to censorship. and that the line between DeFi systems and central financial systems is different from the past. “more permeable” He said it was starting to take shape.
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“Although the DeFi market is not yet large enough to pose a risk to financial stability, it would be worth it if regulators and regulatory authorities follow (DeFi) developments closely and try to better understand (DeFi’s) operations, structures, potential benefits and underlying risks. ”
- global regulators, “Potential impacts if adopted on a large scale” due to private stablecoins It was announced that he was looking into it closely.
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“Authorities around the world aim to reduce uncertainty regarding digital assets, including stablecoins. Discussions continue within the European Union on the proposed legal framework for cryptocurrencies and what obligations stablecoins should have.”
The article titled European Union Continues Negotiations for Cryptocurrency Regulations was prepared by Ömer SAKMAR and published on koinbulteni.com.