Authorization, surveillance, passport … Brussels presents its strategy for …

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For the first time, the European Commission has proposed new legislation on « crypto assets ». The aim is to « encourage innovation while protecting financial stability and protecting investors from risk, » said Brussels. Here are the four flagship suggestions.

1. A broad definition of & # xD;

« Cryptoassets come in many forms, » ​​says the commission. A crypto asset is a digital representation of values ​​or rights that can be electronically stored and exchanged.

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The new legislation therefore does not only affect cryptocurrencies like Bitcoin, as the Commission refuses to group crypto assets into financial instruments. « Some are not secured by anything, some provide access to a service and others are secured by assets or real currencies, » the institution explains.

2. A system of prior authorization & # xD;

Cryptoasset service providers must be physically present in the EU. They are also subject to prior approval of a national permit before starting their activities.

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They must meet capital requirements, governance standards, and a commitment to segregate their clients’ assets from their own. These crypto asset service providers are also subject to technical requirements in order to avoid the risk of cyber attacks and, in particular, data theft.

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Authorization, surveillance, passport … Brussels presents its strategy for …
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