The European Securities and Markets Authority (ESMA) has announced that it will examine all types of cryptocurrency investments to determine the regulations needed.
The financial body, which decided to take the step in accordance with the US SEC’s lead, is considering evaluating each offering on a case-by-case basis.
Media resources reported that ESMA “has set some funds for financial innovations and developments”, budgeting more than $1.2 million to ensure proper monitoring of digital assets and other Fintech-related projects.
The regulatory body reportedly unveiled that Blockchain and digital assets will be a priority in this budget.
“It expects the rapid pace of financial innovation developments across the EU securities markets to continue in 2018. These developments influence the way in which securities are developed, traded and supervised. In turn, ESMA is undertaking material analysis on the emergence of such instruments as virtual currencies, such platforms as ICOs and such tools as the distributed ledger technology. “, the financial body declared.
Coordination and Supervisory Treatment on ESMA’s 2019 List
ESMA looks at that digital asset as needing the most monitoring of all asset class on its watchlist, for a more stable economy in the region, to provide investors with verified investment opportunity, which will reflect in more money in the area.
It is worth mentioning in this context, that the EU has been known of its cautious stance toward ICO and digital assets, and in the same time, has been careful not to undermine the industry with excessively strict regulations, while it admits that the consumer warnings were not enough to protect investors from fraud- according to financial experts.
ESMA will be monitoring the market to focus on the danger that surrounds the use of blockchain, and take a full advisory role when the need urges.
Among the goals for 2019 ESMA already set, is to “Achieve a coordinated approach to the regulation and supervisory treatment of new or innovative financial activities and provide advice to present to the EU institutions, market participants or consumers.”, unveiled a document pertaining to the Annual Work Programme.
In addition, the agency has dedicated a 6 full-time staff to specifically monitor and gather intelligence on digital assets and Fintech movement.