The European Commission has proposed a regulatory framework for cryptocurrency assets and stablecoins, following a leak of a draft proposal last week.
The official draft 168-page proposal, published on Thursday, underlines the need for a “sound” legal framework that clearly defines the regulatory treatment of all cryptological assets not covered by current EU financial services legislation.
Cryptographic elements, especially stablecoins , “have the potential to be widely accepted,” the committee said. They will therefore be subject to “more stringent requirements” regarding capital, investor rights and supervision.
“The special regime for cryptocurrency assets will ensure a high level of consumer and investor protection and market integrity by regulating the main activities related to cryptocurrencies,” the committee noted. Main activities include services such as crypto exchange and wallets.
“By imposing requirements on the main cryptocurrency service providers and issuers operating in the EU, the proposal is likely to reduce the sizes of cryptocurrency fraud and theft.”
The committee also proposed a regulatory framework to allow companies to test blockchain technology in trade and settlement processes.