ESMA Allocated 1.1m Budget to Monitor Fintech and Digital AssetsOctober 5, 2018
A document published yesterday, Oct,4, the ESMA or European Securities and Markets Authority has budgeted more than one million euro for keeping an eye to digital currency assets and fintech.
ESAM is a Paris based organization that was founded in the year 2011. The primary goal of ESMA is to make a consistent and standardized rulebook to the financial markets of the European Union, as well as to give supervision to the digital currency market. The authority has created Technical Committees in the fields of industrial businesses which include Information Technology or IT. ESMA also works in the arena of securities legislation as well as a directive.
In its Annual Work Program, European Securities and Markets Authority cites a USD1.1 million euro plan and its goals for the next year that include supervisory and regulatory treatment of new monetary activities, concentrating on digital currency assets and fintech.
In the presented framework, the European Securities and Markets Authority will recognize risks associated with such trends and activities and give sound advice and suggestions where required. What is more, the authority has a set a plan to provide supervision and assistance and at the same time facilitate the execution of the MiFID or Markets and Financial Instrument Directive to make cryptocurrency markets more transparent.
According to the authorized representative, this program will obtain a synchronized approach to the guidance and supervisory solutions of innovative or new monetary activities and suggestions to present to the European Union institutions, consumers and market participants.
A few weeks ago, the European Securities and Markets Authority announced its plans to lengthen limitations on CFDs or contracts for differences, which includes those based on digital currency. This organization justified its action with considerable concern regarding the security of speculators related to the offering of contracts for differences to retail customers.
In March, the organization has expanded its requirements for a contract for differences. Because of the particular features of digital currencies as an asset category the market for monetary instruments offering exposure to digital assets like, CFDs, will be rigorously monitored, and European Securities and Markets Authority will check whether stricter rules are needed, this is according to the crypto watchdog.
In September, Bruegel, a Belgium-based think tank called on European Union ministers for combined legislation on digital currencies and more linked on how they are divided to speculators. The action purportedly comes in order to control related threats while realizing the possibility of blockchain system.