The Community objective of a single economic and financial market in the European Union does not make sense if it is not accompanied by changes and joint advances with technology and the new paradigm set by Digital Assets and Blockchain technology. Therefore, it is no surprise that the corresponding bodies in Europe are working towards this and that we are able to have a regulation that is adapted to and at the forefront of disruptive technologies such as Blockchain. Within the framework of these regulatory measures, we come across the "Digital Finance Package". A plan that starts with the European Commission adopting these new measures and adapting regulation to the new times.
What does this package consist of?
As we have already indicated, the new financial paradigm represented by Digital Assets and Blockchain technology is an increasingly important pillar in the European economic framework. It is therefore necessary for there to be an environment in line with the new system, which promotes projects of this type and reduces the risks for users in terms of their rights and guarantees. The Digital Finance Package aims to optimise and balance these aspects.
This package of measures aims to adopt a digital finance strategy based on crypto-assets and centralised registry technology. These two aspects find their culmination in two important proposals: the MICA Regulation and the eIDAS II Regulation. This is an EU effort to ensure legal certainty in the crypto-assets market and to nurture the system with regulation that has been lacking until now. The aim is to unblock the barriers that new financial instruments and innovative products encounter in the EU financial sector, mitigating the risks that may be encountered by the main players in this area. This supports innovation and adoption of new financial technologies, protecting consumers, users and investors.
This new regulation can either turn the European economic section into an international regulatory example, or betray the very essence of blockchain technology and undermine its purpose.
The future of the Digital Finance Package
As expert lawyers in cryptoassets, at Vicox Legal we have begun to analyse and develop these new regulatory measures that will affect the Web3 and digital assets sector. Thus, we will be able to address all the management of the regulatory impact that may arise from these measures, together with our Compliance and Regulatory Compliance professionals.
These measures have been forced into being due to the massive growth of the Blockchain and Cryptocurrency sector, such as Bitcoin or Altcoins. Thus, cryptocurrencies will require authorisation by a regulatory body (in the case of Spain, the CNMV) and comply with the necessary requirements for their supervision.
There is an increase in the number of experts in the sector who are encouraging people to act outside the legal framework as an initial objective in the creation of digital assets, which have now become a safe haven. But we cannot forget the necessary regulation with purely protectionist intentions with respect to users, consumers and investors.
As a conclusion to this analysis, the European Commission's position is that the sector is the key to the European Union's economic recovery and is confident that financial innovation will drive growth in the EU.
As always, we invite you to learn more about the latest in cryptoassets and bloclchain technology on our blog.
