The Association for Financial Markets in Europe (AFME) represents the leading global and European banks and other important capital market players. The AFME believes that Europe has what it takes to be a significant player in the global crypto and blockchain ecosystem if only it establishes a common regulatory approach in the sector.
The new report outlines five recommendations for achieving supervisory convergence in regulating crypto-assets across Europe.
“If regulators in Europe were to converge towards a harmonised approach to crypto-assets regulation, this could remove barriers to innovation and provide an opportunity to further the objectives set by the European Union to create a European Capital Markets Union (CMU)10 and Digital Single Market (DSM).”
Chief among these is to establish a pan-European crypto-asset classification scheme, which can foster a common understanding of various terms and activities relating to crypto-assets in financial services.
Europe seeks to become the world leader in the field of crypto assets, and, according to AFME, it is extremely important for regulators to cooperate and understand the market, technologies and needs of its users.
The report also indicates the potential benefits and risks associated with crypto assets, as well as raises the question of their use in the financial sector with an emphasis on management, legality and compliance.