Crypto adoption on a mass scale has been one of the most important goals that the crypto industry set. Things have been going great, and as we have already addressed so far, one of the most important issues regarding the mainstream adoption of crypto is regulation.
This is a factor that’s hated by a lot of crypto enthusiasts, but it can trigger more adoption on a wider scale because it triggers trust and confidence among new users. Check out the latest reports about regulation.
European Central Bank addresses crypto regulation
The European Central Bank, aka ECB, is addressing the criteria it would be considering when harmonizing the licensing requirements for crypto in Europe.
Cointelegraph pointed out that in a Wednesday statement, the ECB’s banking supervision division said it would be taking steps to regulate digital assets as “national frameworks governing crypto-assets diverge quite extensively.”
More than that, it’s also important to note the fact that given the seemingly differing approaches to harmonization following the passage of the Markets in Crypto-Assets (MiCA) regulation and the Basel Committee on Banking Supervision issuing guidelines for banks’ exposure to crypto.
It’s also important to note that the ECB said it would apply criteria from the Capital Requirements Directive — in effect since 2013 — to assess licensing requests for crypto-related activities and services.
Considering crypto firms business’ models and more
To be more specific, the central bank will consider crypto firms’ business models, internal governance, and “fit and proper” assessments which apply to licensing other companies.
More than that, the entity said it will rely on national Anti-Money Laundering (AML) authorities and the financial intelligence units of respective countries to provide all the data necessary to assess potential risks.
“The higher the complexity or relevance of the crypto business, the higher the level of knowledge and experience in the field of crypto should be,” the ECB said.
They continued and pointed out:
“Senior managers or board members with relevant IT knowledge and chief risk officers with robust experience in this area are important safeguards.”
We suggest that you check out the original notes in order to learn more details about all this.