ECB issues opinion on proposed Regulation on markets in cryptoassets

The European Central Bank (ECB) has published an opinion on the proposed Regulation on markets in cryptoassets.

The ECB has welcomed the aims of the Regulation, though it proposes the following clarifications:

The Regulation does not apply to the issuance by central banks of central bank money based on distributed ledger technology or in digital form as a complement to existing forms of central bank money.

A distinction should be made between cryptoassets that may be characterised as financial instruments (falling under the scope of MiFID II) and those which would fall under the scope of the Regulation.

The ECB also sets out issues relating to the conduct of monetary policy, the operation of payment systems and the prudential supervision of credit institutions and financial stability affected by the Regulation.

The European Commission adopted the legislative proposal for the Regulation in September 2020.

While the Regulation will not apply in the UK following Brexit, its application will be relevant to those with a wider interest in cryptoasset regulation.

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