French government sponsors an EU-wide crypto regulator

The French government has proposed that the European Securities and Markets Authority (ESMA) regulate digital currency activities across the European Union.

If passed, this would create a single authority for the crypto sector across the trading bloc and, through ESMA, create uniform rules across the Union, as proposed by ESMA, the French securities regulator, the Autorité des marés financiers, or AMF.

The AMF proposal states:

“Similarly, granting ESMA the right to directly oversee the public offering of crypto assets in the EU (monitoring of whitepapers) and crypto asset service providers will create clear economies of scale for all national regulators and effectively use know-how Concentrate common good Europe “.

Last year, proposals were made for a broad regulatory framework for the European Union for digital currencies. ESMA is a Paris-based financial regulator with the aim of strengthening investor protection in the EU, improving the functioning of financial markets and promoting cooperation between Member States.

Related: EU securities regulator warns of risks from “unregulated” cryptocurrencies

If the AMF’s proposal is adopted, it will leverage ESMA’s experience in managing digital currencies and provide legal certainty for companies trading digital currencies.

The regulation of digital currencies has become a major discussion point for governments around the world. On Monday, the US Treasury Secretary, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, convened the President’s Working Group on Financial Markets to discuss stablecoin regulation.