In recent months, the financial markets have been able to achieve phenomenal returns. Especially the crypto-currencies could profit from this, sometimes even doubled in value. The main reason for this is probably the central banks’ loose monetary policy. The rising money supply is expected to boost inflation, while more and more investors are looking for ways to generate returns. Bonds or liquid investments are generating returns less and less frequently, which is why many investors are looking for a suitable alternative.
At first, crypto-currencies were dismissed as hype, but it is now becoming apparent that they are becoming an integral part of our financial markets. For this reason, the European Union has now also cast a special eye on the assets. The result: crypto-assets, like other assets, are to be strictly regulated. New rules should help to protect investors. The focus here is on the conscious use of the digital currency and the protection of consumers.
A plan, how this regulation should take place, already exists. The results of this work programme of the European Commission could be presented already in the 3rd quarter of this year. At the latest then investors will find out which rules will be considered in the future.
To make the risk as transparent as possible, the EU Commission plans to introduce standardised securities prospectuses. In addition to the important white paper, block chain companies would now also have to produce a securities prospectus. Projects with a particularly low issue volume should be spared from this regulation.
Another possible adjustment could be the IT systems, which should comply with EU standards. We will probably soon find out more about this and what the European Commission has decided.
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