ECB sets licensing targets for cryptocurrencies
The European Central Bank, or ECB, has laid the groundwork for criteria in line with the licensing requirements for cryptocurrencies in Europe. The ECB will apply criteria from its capital requirements directive – which came into effect in 2013 – to assess licensing requirements for crypto-related activities and services. Specifically, the central bank will review business models, internal governance, and appropriate assessments of cryptocurrency companies applicable to licensing to other companies. In addition, the ECB will rely on the National Anti-Money Laundering (AML) authorities and the financial intelligence units of their respective countries to provide the data necessary to assess potential risks.
"The higher the complexity or relevance of cryptocurrency trading, the higher the level of knowledge and experience in the cryptocurrency sector," the ECB said. "Senior managers or board members with relevant IT knowledge and risk managers with extensive experience in the field are important safeguards."
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Regulators standardize rules on cryptocurrencies
The ECB conducts an analysis of the role of cryptocurrencies in Europe, which will "remain a focus area for European banking supervision in the coming years." Through MiCA, global regulators can begin to standardize rules for cryptocurrency service providers within the European Union. On August 2, the ECB published the results of a study identifying the central bank's digital currency as the top choice for cross-border payments via Bitcoin (BTC). Terra's demise is a prime example of how stablecoins threaten the financial system, recommending monitoring and regulatory measures to reduce risk. >>> See Also: Easiest Bittrex How to Use &sHrike For Newbies 2022