France’s AMF Leader invites a new and robust approach to Bitcoin and cryptocurrency regulation.
What’s In The Invitation For Bitcoin?
New statements came from Robert Ophèle, leader of France’s financial regulator Autorité des Marchés Financiers (AMF). Ophèle wants to encourage the growth and development of innovative projects. Therefore, he proposed a robust approach to cryptocurrency regulation.
Speaking at the 5th Annual Fintech and Regulatory Conference, which ended today, Ophèle stressed:
“Europe needs to enact appropriate regulatory policies, with the ever-growing cryptocurrency branch.”
In September 2020, the European Board proposed a new regulatory framework for crypto assets. In this context, the proposal includes trading using crypto processes. It also included a pilot application for markets that wanted to compromise.
In addition, the board has made another breakthrough for crypto assets that are not considered financial instruments. The committee also introduced an approach called the Crypto-Asset Markets Regulation (MiCA). As a result, digital wallet providers and crypto exchanges will also fall under MiCA.
Ophèle notes that the committee proposed to make crypto regulations. Ophèle said:
“However, it is necessary to structure the regulation for works that do not qualify as financial instruments. For this reason, I must admit that I equally support the other legal proposal that covers crypto-assets that qualify as financial instruments. The pilot proposal may waive some decisions of existing regulations. More precisely, MiCA will close a gap as the pilot prepares the financial market of tomorrow.”
Also, the leader of the AMF talked about various improvements that will help ensure a solid political regime. Ophèle stated that a bounded political regime would definitely drive crypto-based businesses out of the European Union (EU).
Some of the offerings include expanding the scope of tried and tested technologies. In addition, Ophèle emphasized that business models operating DeFi and blockchain should be tested in a pilot application. He also stated that permission should be given for this.
Authority to ESMA to Manage New Regulations
Additionally, the AMF Leader recommended that the European Securities and Markets Authority (ESMA) be responsible for the new regulation. Ophèle, who took the occasion to propose ESMA as a competent institution, said:
“First, this step will be the best way to ensure equal footing in the EU. Second, because this regulation is new, it is easier to empower ESMA from the very beginning when considered at a later stage. Moreover, since the cost of entry into the crypto world is so high, it would make sense to pool all the expertise in one-on-one authority.”
In this midst, more countries continue to establish regulatory policies for the crypto industry. However, European Central Bank (ECB) leader Christine Lagarde said in January that Bitcoin is in need of a unified global regulatory framework. We can say that more regulations will be on the market for Bitcoin in the coming time periods.