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Jyoti Singh
Sep 16, 2020
by Jyoti Singh

EC’s Leaked Draft Indicates Government Body Planning To Regulate Crypto

Leaked Draft
The leaked draft document of the European Commission (EC) indicates that soon the government body will regulate the crypto-asset market. 

As per the report, there are chances that by the end of this month, the government would release the leaked draft, officially.

Further, it has been mentioned that if the government would have imposed the sanctions then the European Union might not have integrated them into the laws till the year 2022.

Leaked Draft Discusses New Framework

While going through the leaked document, it has been found that EC has been planning to bring in a new framework for a digital asset called the Markets in Crypto-assets (MiCA). 

MiCA framework would be similar to the framework of the Markets in Financial Instruments Directive (MiFID), which regulates the European securities market.

The document indicated that if MiCA would be imposed then those cryptocurrencies which are loosely regulated presently will get legal clarity. 

However, in the document, it hasn’t been mentioned to what extent the cryptos would be regulated by it.

The leaked draft also mentioned that compared to digital currencies as a whole, presently, the commission is more concerned about stablecoins.

Additionally, the draft reads, “While the crypto-asset market remains modest in size and does not currently pose a threat to financial stability, this may change with the advent of ‘stablecoins’ as they seek wider adoption by incorporating features aimed at stabilizing their value and by exploiting the network effects stemming from the firms promoting these assets.”

Updated Whitepaper Of Libra

If the commission regulates the digital asset then this could be because of Facebook, which has been planning to introduce Libra. 

A few months ago, the whitepaper of Libra was updated by its associated members, by doing so, they have been trying to change the digital currency’s structure.

Presently, the European Union has not confirmed anything regarding regulating crypto, but some of its individual nations have started doing so. 

The countries’ regulators have implemented frameworks in order to bring crypto-clarity in their nation.

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EC’s Leaked Draft Indicates Government Body Planning To Regulate Crypto
Jyoti Singh
Jyoti is a graduate from GGSIPU and has done her PG Diploma in English Journalism from IIMC. Presently, she is working as a content writer with Agio Support Solution Pvt. Ltd. Her aim is to provide informative content about cryptocurrency and blockchain, to the tech-enthusiasts.

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