The European Central Bank (ECB) could be given greater powers to regulate cryptoassets.
The European Commission has proposed new rules to cover cryptoassets and create a user-friendly and safe environment for the emerging asset class.
First published last September, the Commission’s Markets in Crypto Assets (MiCA) framework brings together existing rules in some European Union member states such as ensuring effective anti-money laundering procedures to check who is buying or selling the cryptoasset.
The current proposals also suggest issuers of cryptoassets in the EU must, in the future, publish a white paper to be assessed by their national financial supervisory authority, which can prohibit the issuance of those tokens.
European Parliament representatives have suggested the ECB should also have these powers.
Further amendments are also due to be tabled in European Parliament by 19 April.
Crypto trade body Global Digital Finance (GDF), which is running a working group on the new rules, said it wants to see “proportionality in creating a level playing field for cryptoassets.”
A recent survey of GDF members surveyed in the organisation’s 2020 annual report identified a lack of regulatory clarity as the biggest challenge facing the sector this year.