The European Union has announced that it is making moves to compile and pass a new draft crypto law before the year ends.
The ruling to release the draft crypto law was made after the EU said it was making massive plans to reduce its crypto regulatory framework.
The Union says even though the ravaging coronavirus pandemic might be an obstacle, it was hoping to have the proposals ready before the end of Q3. Reports have claimed that the commission has been in protracted talks with crypto experts all over Europe to be able to come up with what they term a “favourable law”.
Presently, the commission said it has already drummed up three vital aspects of the non-paper law.
New draft crypto law to address three vital areas
According to the Union, the first aspect of the draft crypto law deals with the creation of a legal defining term for all digital assets, which would include stablecoins.
The second part of the law will see the Union make massive changes to its regulations concerning firms that would be able to provide banking services to crypto traders and firms. As a result of the service as mentioned earlier, the Union would add digital assets to the same class group as bonds and other types of markets.
Finally, the Union will look to create a safe space for blockchain-based industries and investments. With this in mind, the Union will create a legally binding term for every firm classed under this category.
BlockTech Foundation chairman lauds new draft crypto law
Reacting to the guidelines mentioned above, the chairman of the European BlockTech Foundation, Bruno Schneider Le Saout says the laws are unique and would be the moral compass that will guide the dealings of the digital assets market.
Furthermore, he said he was happy with the fact that all the areas that the previous crypto law didn’t touch have been included in the new draft crypto law.