AFME called on the European Union to develop a common regulation for the cryptocurrency industry
Europe could become a world leader in crypto assets if it manages to create a common approach to regulating the sector, according to the Association for Financial Markets in Europe (AFME).
A new report by the financial markets protection group Of the AFME says that with coordinated regulation of the cryptocurrency market, Europe can take a leading position in the field of crypto assets. The AFME report sets out five recommendations to achieve this goal.
The main objective is to create a pan-European scheme of classification of crypto assets, which can contribute to a common understanding of the various terms and actions related to crypto assets in financial services. James Kemp, managing Director and Director of technology development at AFME, stressed:
"There has been rapid growth in the crypto asset industry [ ... ], but to realize their benefits, it is increasingly important that crypto asset regulation is coordinated regionally and globally to stimulate innovation while maintaining financial stability and ensuring a fair market."
Further key recommendations include the definition of "clear expectations" for the issuance of crypto assets, the introduction of "activity-based and technologically independent regulation" and the use of modified existing regulation for the sector. First of all, according to AFME, achieving the similarity of the regulatory framework with global and regional initiatives should remain a top priority.
