Earlier in March this year, the EU winded up crypto consultation and that made for quite some news. With much buzz around what and whatnots of the entire procedure, there was a lot to look forward to. However, the most interesting thing around it was a French regulator’s opinion around the crypto buzz. The regulator happens to be a major one with quite some reputation in the industry, and that is why it is worth exploring this stance.
The European Commission winded up its much-debated crypto consultation around 8 months back i.e. back around March. The ever-increasing buzz only reached a higher boiling point with this valued opinion from a renowned French regulator. With crypto energy being on the rise around the world, such events determine more about its fate and potential. That is why such insights are worthy of crypto enthusiasts. To know more about this visit Bitcoin Rush UK.
An official stance was published by one of the AMF stock market’s regulators as an opinion centered around the consultation. Autorité des Marchés Financiers is a well-known regulatory body in France and this is what assigns it an important place in the matter. The regulator continued to talk about crypto power while also bringing into the picture, personal approaches, and ideas that could mingle well with the crypto market. The approach of the EC was carefully dissected, and several new proposals were pushed forward.
That being said, news also poured in regarding the difficult classification of cryptocurrency. It is rather strange to observe that cryptocurrencies have easily grown and proliferated with so much haze around their true nature. A statement that came out later in April, discussed how crypto classification is another need that needs to be addressed. The Autorité des Marchés Financiers body believes that such a categorization should come from pre-existing categories alone. According to them, this approach will help create a distinct line between cryptocurrencies that are financial and non-financial.
The Autorité des Marchés Financiers body does believe that with the current growth graph, the immediate classification would bring more harm than good. With Bitcoin and other currencies still in the race to discover themselves, a rigid ruling or classification based on their nature could well be premature and detrimental.
The AMF thinks that a major step such as classification should only be undertaken after valuable feedback. Such a practice will make room for a classification that remains relevant with time and is by no means rushed. Ideally, such a classified system could consist of stable coins, utility coins, payment coins, etc.
While pushing forward the need of the hour, the spokesperson took time out to underline the vitality of creating a defined system that deals with crypto at the EU level. Eventually, such a practice will create an easy and functional ground for currencies that are nationally owned as decentralized. All kinds of coins (fiat or crypto) can then step into the same field while promoting easy comparison of value. This might lead to a transparent regulatory system.
With France having had a strong opinion against Facebook’s crypto creation Libra, AMF resonates with the same spirit. The AMF body went on to take longer leaps in the stride by listing its opinion around the impact stablecoins could have in economies.
Other than these important discussions, some light was also shed on interbank settlements and central money. It is believed that could brighten the chances for on-chain processes that will make way for payments and delivery. The official statement that was issued also carried traces of other prospective solutions. One of them was a digital lab that could promote security and testing of tokens. After all, such steps at the EU level could well consolidate crypto practice while alleviating regulation related troubles.
All being said, France continues to be on the road to testing a central virtual currency. With the EC putting forward its consultation idea, there might be a lot more to gather on the front of cryptocurrency and Blockchain. Important authorities in France have been exercising a close watch in this regard, and all the developments in this domain are being carefully monitored.
To wind it all up on an interesting note, there’s news about a regulatory sandbox. With banks of France dwelling on testing the merging of a central virtual currency to allow interbank settlements, the prospects are endless. Likely, the impact of tokens will soon be studied and a useful classification will emerge sooner or later.