France has asked the European Union to regulate cryptocurrencies. The country has asked the watchdogs to be given the powers to restrict cryptocurrencies. France has given big reforms to boost financial regulation in Europe.
France calls for the regulation of cryptocurrencies at the EU national level. The country has asked the watchdogs to be given the powers to restrict cryptocurrencies. Presently, in France national supervisors are looking over crypto markets but now the regulators of France have proposed big reforms to boost financial regulation across Europe.
As per the proposal, the powers will be given to the European Securities and Markets Authority, which is the EU’s Paris-based regulator. These regulators are looking to make more strict rules for cryptocurrencies because of the rising concerns of frauds, money laundering, criminals to finance drug smuggling and other illegal activities.
Crypto market sees the slump
The European crypto market is estimated to be worth more than 1 trillion pound. However, there are some very important markets that have crashed as the Bitcoin prices decreased to 8% and Ethereum to 21% respectively.
Dogecoin has also dropped 21% and Binance Coin, XRP and Cardano were also seen moving downwards in the past 24 hours.
Autorite Des Marches, French regulators said that for the benefit of the European Union, it is essential to give powers to Esma so that they can directly supervise the public offers of crypto assets in the EU. Esma should also look after Cryptoasset service providers as they would create an obvious economies of scale and the effective bundling of expertise of all national regulatory agencies.
It is very important for the EU to consider shifting to real centralized supervision of certain types of institutions and activities. Supporting this need to reform the financial regulation processes and standards all over Europe, AMF is given the power of being a vocal supporter of the reformation.
The suggestion helps to boost the single market after Brexit and help the EU’s post coronavirus pandemic economic recovery. Binance, one of the largest crypto exchanges in the world, has shifted its operations to Malta in 2018. The regulators of Malta said that they were not responsible for regulating the exchange last year. This means there is uncertainty as to who is going to supervise the activities of the firm.
The authorities from France want new supervisory tools to be given to Esma. The measures are used by the US so that they could give guidance on interpreting financial rules and regulations.
Authorities are also requesting to transfer all bourse operators and other activities from national governments to Esma. Julie Patterson, Head of Asset Management Regulatory Change at KPMG believes that the EU nations have very distinct views regarding direct oversight from an EU-level. The supervision by EU institutions at present is very limited.