In view of the increasing digitalisation of the financial markets, the European Commission has recognised the need for a framework of regulatory protections for investors in crypto-assets in order to fill the existing legal void.
The intention behind the proposal for a Regulation on Markets in Crypto-assets is to ensure that the European Union remains competitive with the digitalisation of financial markets by providing a regulatory environment that allows innovation.
Where EU member states have existing laws to regulate types of crypto-assets, the Regulation would either replace or complete these legal frameworks in order to ensure a single approach across the common market.
The article was written by Garry Reuland, Associate, under the supervision of Mark Shaw, Partner, Wildgen S.A.