A New ‘Wave of Regulatory Obligations’ Over Crypto Players in EU
In what is described as the most comprehensive regulatory framework for cryptoassets to date, a leaked EU draft document reveals that both issuers of cryptoassets and providers of related activities will have to make crucial choices as they face what is described by industry experts as a “wave of regulatory obligations.” And according to EURACTIV’s report, stablecoins, referred to in the document as “asset-referenced tokens” or “e-money tokens,” appear to be an area of particular concern for the EU regulator, with far stricter oversight proposed than for other cryptoassets.
And according to the draft, anyone developing cryptoassets targeted at the EU market must produce a white paper that needs to be approved by both national and EU regulators before the issuer can start operating – a change in policy that undoubtedly will present a major challenge for the industry. Up until now, cryptoasset issuers have largely operated in a regulatory gray area globally, and it remains to be seen if major players in the industry will comply with the new regulations, and if not, what EU regulators will be able to do about it.
