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ECB to rope in crypto with licensing framework

ECB to rope in crypto with licensing framework

The European Central Bank (ECB) has announced its intent to harmonise how banks offer crypto assets through a crypto regulatory framework to be implemented across the Union.

The statement made by the ECB follows the Markets in Crypto-Assets (MiCA) proposal that was announced earlier this year by the European Parliament to standardise crypto regulation in the EU.

The ECB stated: “In Germany, certain crypto activities are subject to a banking licence requirement and to date, several banks have requested to be authorised to conduct these licensed activities. It is in this context that the ECB is taking steps to harmonise the assessment of licensing requests.”

This new framework plans to create consistency across crypto regulation by highlighting the most relevant points of the Capital Requirements Directive (CRD) criteria when it comes to licensing crypto-assets and services.

The ECB will focus on assessing the risk profiles and risk capabilities of crypto firms, particularly their business models, internal governance, and ability to assess risk by appointing appropriate IT and risk experts.

To assess potential cybersecurity and fraud risks in crypto-assets, the ECB plans to rely on anti-money laundering authorities and Financial Intelligence Units.

Comments: (1)

A Finextra member
A Finextra member 19 August, 2022, 07:57Be the first to give this comment the thumbs up 0 likes

Finally, and hope that the requirements are similar to those on deposit taking institutions, and when used for "asset transfers/payments"  the crypto should meet both aml /atf rules and the payment servicers directive requirements, irrespective of if it is a credit institution or a "unregulated institution" that offers the crypto services. Furthermore the EU/EES area is one single market so the same rules should apply in all member states, not only the Euro area.