ESMA Wants to Create 'Sound Legal Framework' for Cryptocurrencies in 2020
Citing concerns about digitalization risks to financial markets, ESMA plans to focus more on crypto regulation this year.
Jan 9, 2020 at 2:30 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/5U7WZV4K2NBYFJLGMF73BXE6YQ.jpg)
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The European Securities and Markets Authority (ESMA) plans to push for more regulation around cryptocurrencies and related products as part of its 2020 focus.
ESMA published its 2020-2022 priorities list Thursday, noting that EU capital markets are facing new risks from digitalization. The organization wants market participants to acknowledge and prepare for these apparent risks.
"The dangers of cyberthreats to the financial system as a whole and a sound legal framework for crypto-assets are increasingly becoming areas of focus for ESMA together with the other ESAs, the ESRB, the ECB and the European Commission," the document reads.
ESMA has been grappling with the question of how to regulate cryptocurrencies and securities in the space for years, developing rules for initial coin offerings and derivatives around the space.
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