en
Back to the list

Global Regulators Taking Full Steam Ahead to Control Digital Assets

Legal

www.thecoinrepublic.com 22 February 2022 21:30, UTC
  
Reading time: ~3 m

  • It is expected that we would see worldwide regulatory convergence for certain of them. particularly stablecoins and digital asset service providers, Ophele said during an Afore Consulting webinar.
  • The Financial Stability Board, which brings together regulators, central bankers, and finance ministry officials from G20 economies, is investigating what should be done with cryptocurrency assets like bitcoin and stablecoins.
  • The European Securities and Markets Authority, is looking into social media influencers, who give stock suggestions without restrictions on their reliability.

Regulators were late to the fast-evolving cross-border world of digital assets, but a senior official indicated on Wednesday that they might have their first worldwide framework of laws in months. The Financial Stability Board, which brings together regulators, central bankers, and finance ministry officials from G20 economies, is investigating what should be done with cryptocurrency assets like bitcoin and stablecoins.

The European Union Has Approved A Comprehensive Set Of Regulations

Despite the fact that cryptocurrency assets are exchanged by worldwide firms, they are now regarded differently around the world, ranging from bans to no restrictions at all. The European Union has approved a comprehensive set of regulations for certifying and overseeing cryptocurrency asset market players. According to Robert Ophele, chair of France’s markets watchdog AMF and a member of the FSB, regulators are following the universal basic principle of applying the same rules to all risks.

He does expect that we will see worldwide regulatory convergence for certain of them. particularly stablecoins and digital asset service providers, Ophele said during an Afore Consulting webinar. Because bitcoin assets are not yet a threat to financial stability, regulators were behind the curve, but this was now at the top of the FSB’s priority, according to Ophele.

He believes we will be able to achieve, deliver on these challenges in the next quarters. The FSB is going all out on this issue, Ophele added. Although the FSB does not have the authority to issue binding rules, its members agree to incorporate its regulatory concepts into their respective national rulebooks.

Regulators are also attempting to keep up with other aspects of a quickly digitalising financial system, such as the increased use of social media and cell phones by ordinary investors to purchase and sell stocks. ESMA, the European Securities and Markets Authority, is looking into influencers, or social media influencers, who give stock suggestions without restrictions on their reliability, according to ESMA chair Verena Ross.

ALSO READ: Bitcoin mining in Georgia has a lot of scope

The Expansion Of Cross-Border Digital Market Activity

This fast-moving phenomenon necessitates constant attention, she stated. According to Ophele, the EU required a muscular market watchdog similar to the European Central Bank’s role in banking. With the expansion of cross-border digital market activity, the current framework is no longer suitable for purpose, Ophele added.

Cryptocurrency is an uncontrolled digital currency that is neither legal tender nor immune to market volatility.


   Source
Back to the list