The Association for Financial Markets in Europe (AFME), often regarded as the voice of Europe’s wholesale financial markets, has provided recommendations on how the region could get to grip with the ongoing crypto revolution.
The industry association reportedly shared their thoughts on the new industry in a new report and advised regulators in Europe to “work towards a common approach to the regulation and development of crypto-assets in financial services."
To reach that goal, the AFME notably outlined five core steps that the EU must take, including the provision of a pan-European crypto-asset classification scheme.
Such a classification scheme per the report would enable industry participants to understand under which classification any cryptocurrency they are dealing with would come under, thus, making it easier for them to reach regulatory compliance.
Another step mentioned by the AFME is the need for regulators to set “clear expectations” on issuing crypto-assets, perhaps outlining what requirement that companies must meet before conducting a crypto-related offering.
In all, the AFME did not fail to advise the EU to maintain flexibility with any regulation that it decides to introduce for the industry, reckoning that the rules should be “activities-based” and also take into consideration the continually evolving landscape of the industry.
Conclusively, the AFME recommended that the EU, if required, could use as part of its crypto regulation, existing rules with amendments, but should always prioritize the connection of regulatory frameworks with global and regional initiatives.
Interestingly, the latest call by the AFME mirrors a recent pledge by Valdis Dombrovokis, the European Union’s Finance Commissioner, to provide unified regulation on cryptocurrencies, including Facebook-led Libra project.