ESMA has announced on Thursday its 2020 crypto regulations plan that focuses on the data security of the financial industry.
January 9, 2020, | AtoZ Markets – The European Securities and Markets Authority (ESMA) plans to push for more regulation around cryptocurrencies and related products as part of its 2020 focus.
ESMA wants to focus on the data security of cryptocurrencies in 2020
ESMA published its 2020-2022 priorities list Thursday, noting that EU capital markets are facing new risks from digitalization. The organization also wants market participants to acknowledge and prepare for these apparent risks. The document reads:
“The dangers of cyberthreats to the financial system as a whole and a sound legal framework for crypto-assets are increasingly becoming areas of focus for ESMA together with the other ESAs, the ESRB, the ECB and the European Commission.”
Moreover, ESMA has been grappling with the question of how to regulate cryptocurrencies and securities in the space for years. They have been developing rules for initial coin offerings (ICOs) and derivatives around the space.
Crypto regulation around the world
In November 2019, the US Financial Stability Oversight Council (FSOC) called for tighter regulations on stablecoins and digital assets.
As part of its latest annual report, the council identified digital assets and stablecoins as major areas for concern, urging closer scrutiny of existing laws and a review of new products in the blockchain space.
in October, the Central Bank of Russia revealed it is against the integration of cryptocurrencies in the public monetary system. They have maintained their stance even though some banks and politicians, Vladimir Putin included, have insisted on adopting crypto regulations instead of banning digital coins.
On January 10, 2020, the EU will implement a new law – known as the EU Fifth Anti-Money Laundering Directive (5AMLD). This requires cryptocurrency platforms and wallet providers to identify their customers for anti-money laundering purposes.
Furthermore, some countries such as Germany, Italy, and the Netherlands are expected to implement the 5AMLD law by the deadline this week, but other nations are resisting it. The United Kingdom, however, has decided to implement the law despite its decision to leave the EU.
Additionally, Mexico is also reportedly taking a harder stance on fintech and cryptocurrency companies. We can clearly see the current trend is moving towards increased regulation and oversight across the globe.
Do you believe that the European Union will adopt more crypto-friendly legislation for cryptocurrency by year’s end? Let us know your thoughts below.