Steven Maijoor, Chairman of the European Securities and Markets Authority (ESMA) has backed the release of further laws to guide the use of cryptocurrencies in the continent.
The Chairman reportedly shared these thoughts while speaking with the audience at Fintech Conference 2019 and went further to highlight the potential benefits of implementing regulations at this moment.
According to him, “the absence of applicable financial rules leaves (crypto) consumers exposed to substantial risks.”
While he failed to mention what those risks were, Maijoor clarified that all cryptocurrencies do not fall under existing European securities law.
For instance, he mentioned that while some cryptocurrencies provide utility and consumption rights on the platform that issues it, some others like Bitcoin are set up to serve as a means of exchange.
Given the diversity, Maijoor acknowledged that crypto regulation does not require “a ‘one size fits all’ approach,” similar to what the U.S SEC adopted for all tokens issued by crypto projects.
He proposed that regulators should create new laws to govern Initial Coin Offerings (ICOs) since these also pay dividends to investors like other traditional investment tools.
Specifically, Maijoor recommends the implementation of these laws for crypto-to-crypto as well as crypto-to-fiat transactions.
Understandably, the Chairman’s comments at Fintech Conference follows up on an earlier call made by his agency, ESMA, for relevant authorities to create a regulatory framework for the use of cryptocurrencies.
While EU nations continue to wait for the crypto regulatory framework, Stmarket.co has reported individual efforts by countries such as Belarus, Lithuania, and Germany to bring the new industry under their control.
Hopefully, the state-focused crypto regulations will not conflict with laws at the continental level when they finally arrive.
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