Cryptocurrency Regulation is Real — New EU Proposals Unveiled
Throughout 2019 and 2020, we have periodically pointed out to blog readers and PolicyScope Risk Monitor readers how policymakers have been steadily, incrementally, and subtly expanding the regulatory perimeter to cover cryptocurrency markets and issuers. We have pointed out to our Medium readers as well, particularly in March 2020 and April 2020.
This week and this morning, the PolicyScope Platform has been registering increased activity and more concrete initiatives emanating from Europe, with our risk measurements pointing directly at increased regulation.
Momentum measurements lit up like a Christmas tree two days ago
No matter which term we use, the time series data all shows a nearly vertical slope of activity this month so far:
In particular, this morning the Platform captured the full text of a leaked European Parliament draft resolution laying out the case for an EU rulebook covering crypto-assets.
Anyone reading the Platform contents this morning would have been prepared for today’s bombshell announcement by the European Commission. Policymakers in Brussels did not wait for a request from the European Parliament…..they moved today formally to propose a broad regulatory infrastructure to cover both crypto-asset trading AND issuance:
The Commission’s move is nuanced. Cryptocurrency issuers will generally be horrified at the reach of the regulatory proposals (including, but not limited to, the requirement that issuers must be physically located in the European Union and be directly subject to the full scope of regulatory requirements. But intermediaries relying on distributed ledger technologies will find a surprisingly supportive structure that draws heavily from the European Union’s interest in promoting enhanced data protection.
Our PolicyScope Risk Monitor readers will receive the full analysis tonight.
This is not the first time our PolicyScope data spotted policy activity upticks, of course. From CBDC policy to cryptocurrency and crowdfunding regulatory action, if a policymaker acts anywhere on the planet our PolicyScope Platform captures it and lets us know.