The European Commission is moving provide more clarity and legal certainty for the cryptocurrency industry in their member states.
On September 24th, the EC officially adopted a new digital finance package that includes retail digital finance and payments strategies and legislative proposals on crypto assets.
The EC said that The new package is the first time the agency has proposed new legislation on crypto assets.
As part of the new legislative proposals, the EC is paying particular attention to stablecoins, a type of cryptocurrency that links the value to an external reference such as the US dollar or an algorithm.
Specifically, The proposals aim to introduce stricter requirements for issuers of stable coins in terms of capital, investor rights and supervision, says the proposal’s text.
There, the EC wants to require issuers of stable coins to conclude the approval of a competent national authority if the outstanding amount of stable coins exceeds EUR 5 million (USD 5.8 million).
The agency also wants to force issuers of crypto assets to publish a whitepaper with mandatory disclosure requirements. Small and medium-sized businesses are exempt from the publication of this white paper if the overall view of the supply of crypto-assets is less than 1 million euros ($ 1.1 million) over a period of 12 months.
The exclusion ensures that “the requirements for providers of crypto asset services are in an appropriate proportion to the risks that arise from the services provided”.
According to the authority, The new measures will be crucial to support the EU’s economic recovery as they will open new avenues for channeling finance to European businesses. “By making rules safer and more digital for consumers, the Commission aims to drive responsible innovation in the EU financial sector, especially for highly innovative digital start-ups,” the EC noted.
The package is now subject to scrutiny by fellow legislators from the EC, the European Parliament and the European Council.