EU Proposes Regulation For Cryptocurrencies

EU Proposes Regulation For Cryptocurrencies The EU proposes regulation for cryptocurrencies. Valdis Dombrovskis, Senior Vice President of the EU Commission, announced his proposal. According to the regulatory proposal announced by Valdis Dombrovskis, Senior Vice President of the EU Commission, platforms that provide services for crypto assets will have to be physically present in EU countries in order to transact. These enterprises will be obliged to obtain authorization from the relevant local units in order to serve in the European Union (EU) country where they are located. These platforms will need to comply with the rules regarding capital authorities and governance structures. Cryptocurrency businesses will have to separate their client assets and equities. These platforms will need to have sufficient information technologies and protect crypto assets from the risk of cyber theft. Platforms that serve crypto assets will prevent market disruptive actions with the necessary mechanisms. Those who prepare crypto assets will openly share information about their responsibilities and associated risks. The crypto asset service provider, which has a permit from an EU (European Union) member country, will have the right to work in other member countries with the authority called "EU Passport". All of the cryptocurrency assets will be audited by the European Banking Authority. In this way, with the regulation, crypto assets will be regulated within the framework of financial services. The approval of the EU member states and the European Parliament (EP) is required for the regulation to come into force.