The European Commission is committed to providing greater legal clarity and security for the cryptocurrency industry in its member countries.
On 24 September, the European Commission officially approved a new digital finance package that includes digital finance and retail payment strategies, as well as legislative proposals for cryptocurrencies.
The European Commission said that the new package is the first time the authorities have proposed new legislation on cryptocurrencies.
As part of new legislation, the European Commission is focusing on stack coins, a type of cryptocurrency that attaches value to an external link, such as the US dollar or an algorithm.
In particular, the proposals aim to introduce stricter requirements for stable currency issuers with regard to capital, investor rights and supervision, as stated in the text of the proposal.
Here, the European Commission seeks to require stablecoin issuers to be authorized by the competent national authority if the amounts due in stablecoins exceed 5 million euros (5.8 million dollars).
The government also wants to force issuers of cryptocurrencies to publish a white paper that includes mandatory disclosure requirements. SMEs will be exempt from publishing such a paper notice where the total reward for offering cryptoassets is less than € 1 million ($ 1.1 million) over a 12-month period.
The exclusion ensures that “the requirements for providers of crypto services are proportionate to the risks arising from the services offered.”
The new measures will be crucial to support the recovery of the EU economy, as they will open up new avenues for direct financing of European companies, the ministry said. The EU noted that “by making regulations safer and more digital for consumers, the Commission is committed to promoting responsible innovation in the EU financial sector, especially for highly innovative digital companies.”
The package is currently being reviewed by legislative bodies of the European Commission, the European Parliament and the Council of Europe.