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the new proposal from France

Key facts:

ESMA would have the power to directly supervise public offerings of cryptocurrencies.

If the AMF proposal is applied, the practice of ESMA would be used in crypto regulation

That there is a single authority in the European Union for the regulation of cryptocurrencies is the new approach of the Authority of Financial Markets (AMF) of France.

This proposal, which is directed by the European Securities and Markets Authority (ESMA, for its acronym in English) was reflected in a document, which was based on the responses to a consultation carried out by the European Union, which disseminated the AMF during the current month under the title: “More European supervision and better regulation are key elements to build a true union of markets”.

ESMA is an institution that supervises the markets in Europe, aims to improve the functioning of financial markets and promote cooperation between the member states of the economic bloc.

The four-page brief says that: «granting ESMA the power to directly supervise Public Offerings of Cryptoassets in the EU (scrutiny of white papers) and of cryptoactive service providers, would create obvious economies of scale for all national supervisors and would concentrate technical know-how efficiently, for the common benefit of Europe. ‘

The publication also points out that it is recommended that the aspirations that the nations that make up the European Union may have in this regard be minimized. In this way, you can agree on a single regulatory framework that is managed by ESMA and thus all the competences can be transferred to him.

The document then addresses the issue of the governance of ESMA, which it considers should be reviewed to allow a more European dimension in decision-making. In this sense, it explains that the current management framework of the supervisory authority of the financial system of the European Union is made up of national authorities, which limits decision-making to a broader scope. “It is a question of credibility for the European authority,” he adds.

For the above, the AIMF believes that it is necessary to strengthen the role of the Board of Directors and the independence of ESMA for the different decisions that must be made in this environment.

Meanwhile, the administrative structure, as well as the ESMA’s source of funding, must remain closely linked to its management, This means that members with a lower vote will not be imposed as strict a financial obligation as for those with a higher decision-making power.

It considers that ‘it is also important to ensure sufficient flexibility, so that ESMA can adapt quickly to external market developments and finances. As well as important new projects, in order to adequately fulfill its mission and face the increase in supervisory powers ”.

On the way to complement a single regulation

Later, the document points out that a single regulation must be complemented which requires simplification of procedures in Europe and streamlining financial regulation. In this way, greater efficiency will be achieved in the single market and for the competitiveness of the European Union in the world market.

To which he adds the following: “The choice of regulations instead of directives should be systematized by the Commission in the future, especially when financial products that benefit from a European passport are involved.”

The document adds that efficient European supervision is essential for capital markets union, which must be put into practice together with the establishment of a single effective regulation. This has not had the expected results through the attempts that have been made in legislative matters, the document says.

It is worth remembering that last year, the European Commission proposed create a supervisory body for cryptocurrencies. The project would come into effect at the end of 2020, as CriptoNoticias reviewed on that occasion.

This project planned to create a team of supervisors with national authorities and EU bodies. These teams would be chaired by the European Banking Authority (EBA), an entity that would take on a greater role in controlling the cryptocurrency sector in the region. Today, the Regulation of Cryptocurrency Markets is still under debate.

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