The European Union strengthens regulation of the cryptocurrency market with new powers for the Bank of Spain and the National Securities Market Commission, Cinco Dias reports. A new draft of the EU's previously proposed regulation of the cryptocurrency market exempts non-fungible tokens (NFTs) from regulation.
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The new rules are expected to take effect by the end of 2021 or early 2022. At the same time, cryptocurrency issuers must be headquartered in an EU country and have permission from a mandatory supervisory authority. Financial institutions will also remain the most preferred entities that can receive license from watchdogs to offer cryptocurrency-related services.
The new draft follows an official statement from the Bank of Spain on cryptocurrency-related investments. According to the bank, cryptocurrencies and the supporting technology, may "galvanize and modernize" the financial system in the coming years. However, such assets currently pose high risks due to extreme volatility, complexity and lack of transparency.
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