The French government has suggested that the European Securities and Market Authority, or ESMA, oversee cryptocurrency activity throughout the EU.
If passed, it would form a new authority over the crypto industry across the EU and impose consistent rules via ESMA, as recommended by the French securities watchdog, the Autorite des Marches Financiers, or AMF.
The AMF’s proposal reads as follows:
“Likewise, granting ESMA the power of direct supervision of public offers of crypto-assets in the EU (scrutiny of white papers) and of crypto-asset service providers would create obvious economies of scale for all national supervisors and concentrate expertise in an efficient way, for the common European benefit.”
Suggestions for a legal regime for cryptocurrencies in EU were proposed in the previous year. ESMA is a financial regulatory body located in Paris that aims to promote investor protection in the EU, facilitate the development of financial markets, and stimulate cross-national collaboration.
If the AMF’s proposal is approved, it will aim to build on ESMA’s competence with cryptocurrency regulation and give legal clarity for cryptocurrency firms running in the EU nations.
Governing cryptocurrencies has been a hot topic among governments worldwide. The US Treasury Secretary, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, met the President’s Working Group on Financial Markets on Monday to examine stablecoin oversight.