|Author (Corporate)||European Commission: DG Financial Stability Financial Services and Capital Markets Union|
|Series Details||COM (2020) 593|
Legislative initiative tabled by the European Commission on 24 September 2020, proposing a framework on crypto-assets. It aims to amend Directive (EU) 2019/1937.
Crypto-assets are a digital representation of values or rights that can be stored and traded electronically. They can serve as an access key to a service, could facilitate payments, or could be designed as financial instruments.
This proposal was put forward as part of the so-called Digital Finance Package, alongside a Communication setting out a new strategy for digital finance. One of the strategy’s identified priority areas is ensuring that the European Union's financial services regulatory framework is innovation-friendly and does not pose obstacles to the application of new technologies. Since the publication of the 2018 Fintech Action Plan, the Commission examined the opportunities and challenges raised by crypto-assets.
The initiative cover crypto-assets falling outside existing EU financial services legislation, as well as e-money tokens. It comprises a set of objectives - legal certainty; support to innovation; introduction of appropriate levels of consumer and investor protection and market integrity; financial stability. This proposal includes safeguards to address potential risks to financial stability and orderly monetary policy that could arise from stablecoins. It also aims to amend Directive (EU) 2019/1937, concerning rules and procedures for the protection of whistleblowers.
|Subject Categories||Business and Industry, Economic and Financial Affairs, Internal Markets|
|Subject Tags||Consumer Rights | Protection, Financial Services|
|Keywords||Cryptoassets | Cryptocurrencies, Digital Technology, Free Movement of Capital
|International Organisations||European Union [EU]|