The European Commission yesterday published the draft of a legal framework to regulate cryptocurrencies in the bloc.
The draft, which has a total of 168 pages, aims to regulate both cryptos and stablecoins. In particular, it refers to the need for a "solid" legal framework that clearly defines the regulatory treatment of all cryptoassets that are not covered by existing EU financial services legislation.
According to the commission, stablecoins, due to their potential mass adoption, should be subject to "more stringent requirements" regarding capital, investor rights and supervision.
The commission claims this "bespoke [regulatory] regime for cryptoassets will ensure a high level of consumer and investor protection and market integrity by regulating the main crypto-related activities.
The introduction of this new regulation aims to reduce both fraud and theft in the industry, which unfortunately are quite frequent.
It must be noted the commission has also proposed the creation of a sandbox that will allow companies to test blockchain tech in trade and settlement processes.
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