EU legal framework for Cryptocurencies (cepInput)
The EU Commission wants to clarify the legal framework for cryptocurrencies. A cepInput provides an overview of the current state of regulation and examines whether and under which conditions cryptocurrencies are covered by the main provisions regulating the EU financial markets.
The EU legal framework for crypto currencies is currently largely unclear. Amongst others, a binding definition of cryptocurrencies is missing in EU law. This uncertainty hinders innovation and leaves important questions regarding financial market stability and consumer protection unanswered. The fact that the EU Commission intends to eliminate this legal uncertainty by means of a regulatory proposal in autumn is therefore to be welcomed. Any EU regulation in this area should aim to minimise risks to financial market stability and consumer protection while at the same time preserving the potential for innovation through cryptocurrencies.