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AFME calls for convergence in European crypto-asset regulation

AFME calls for convergence in European crypto-asset regulation

The Association for Financial Markets in Europe (AFME) is calling for greater supervisory convergence in crypto-asset regulation on the continent.

As the European Union and regulators seek to formulate a coherent policy on the nascent crypto industry, the AFME has put together its own five recommendations.

In a position paper, it calls for regulators to consider:

  1. The establishment of a pan-European crypto-asset taxonomy;
  2. Provision of clear expectations for market participants on the process for issuing crypto-assets;
  3. Application of activities-based and technology agnostic regulation;
  4. Application of existing regulation for regulated activities, with any necessary amendments if required;
  5. Prioritisation o convergence of regulatory frameworks with other global and regional initiatives.

James Kemp, MD, head, technology and operations, AFME, says: "There has been a rapid rise in the development of crypto-assets, which could offer significant benefits for wholesale markets.

"However, to realise those benefits, it is increasingly important that crypto-asset regulation is coordinated at the regional and global level to foster innovation, while promoting financial stability and ensuring a level playing field. This should start with forming a common understanding of the various crypto-asset terms and activities in financial services."

Read the full paper:

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