EU Gives Over 1 Million Euros To Supervise Crypto
European Securities and Markets Authority (ESMA) unveiled its budget for 2019. According to the Annual Work Programme, the EU’s financial auditor will allocate 1.1 mln euros to monitor cryptocurrencies and fintech action.
ESMA was founded in 2011 in Paris. Since 2016, its main focus is to supervise and assess risks in the financial market. Next year, the budget for monitoring crypto and fintech will reach 1,107,360 euros.
EU markets regulator stated in its programme the key priorities. The most important thing for the organization next year will be supervisory convergence, evaluating danger in investments, and direct supervision.
ESMA explained that monitoring financial innovation including fintech and cryptocurrencies requires ‘particular focus’. The Organization has to identify issues connected to such activities and trends. In the document, the financial watchdog pointed out, what’s the most important for them:
“Achieve a coordinated approach to the regulation and supervisory treatment of new or innovative financial activities and provide advice to present to the EU institutions, market participants or consumers.”
A few weeks ago ESMA revealed its ideas about restrictions. The financial regulator wants to extend stipulations on contract for difference (CFD). The new regulation will cover crypto-deals. The agency explained that move with “significant investor protection concern”. Earlier this year, ESMA extended requirements for CFD, because of “specific characteristics of cryptocurrencies”.
The organization plans implementing a new framework. It will serve for the use of the product intervention powers prepared by EU’s Markets in Financial Instruments Directive (MiFID II/MiFIR).
Image by Marian Veyo.
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