In Spain, platforms and issuers of cryptocurrencies will be under the CNMV and the Bank of Spain’s supervision. The regulations may be ready by the end of this year or in early 2022.
The European Union will give powers to the National Securities Market Commission (CNMV) and the Bank of Spain to secure greater control and regulation measures on bitcoin (BTC) and cryptocurrencies. The information is part of the draft update that appeared regarding this topic in September 2020.
The digital medium Cinco Días was in charge of spreading on June 21, 2021, part of the content that The European Commission is preparing regarding the cryptocurrency regulation proposal (MICA) and the platforms that work with them.
In it, non-fungible tokens are withdrawn from the coverage of the standard, the granting of licenses to brokers is tightened and portfolio management also appears to be included.
According to the current draft, it is possible that, with this new impetus, the regulations may get ready to operate by the end of the current year or early 2022. To this end, both the issuers of cryptocurrencies and the platforms that provide services with these assets in Europe must be based in a nation that takes part in the European Union.
They must also have authorization from the compliance supervisor. In Spain, the responsible entities will be the CNMV and the Bank of Spain.
The European Central Bank (ECB), for its part, urged Parliament and the European Commission to be clear regarding the definition of what constitutes a cryptocurrency and, therefore, what is subject to MICA and what is not.
In doing so, The European Commission intends to avoid “divergent interpretations”, to bring greater support for the provision of cryptocurrency services on a cross-border basis, and to set a truly balanced list of regulation rules.
The ECB asks not to apply the regulation to digital currencies that are being studied by the world’s main central banks, such as the digital euro, which also appears in the draft.
Creation and Implementation of a Sandbox in the European Union
One of the proposals that also makes an entrance in this regulation is a European Sandbox. There will be a controlled environment under the sole supervision of the State, to check and follow the development of new projects.
The draft eradicates perks to investment service companies. According to the document, brokers must be subject to a new request procedure.
On the other hand, regarding regulation related to cryptocurrenciesGloria Hernández Aler, partner at finReg, a firm specialized in regulatory and financial advice in Spain said that the creation is on its way, and before the end of the year there may be a second advanced official text.
This draft regulatory framework has been around since September 2020. At that time, the European Commission placed stablecoins or stable coins as electronic money. Bitcoin and other cryptocurrencies are being treated as financial instruments.
By: Jenson Nuñez