EU Market Regulator Budgets $1.1 Million EUR To Monitor Crypto’s Fintechs
As it was revealed in the 2019 Annual Work Programme of the European Securities and Markets Authority (ESMA), the EU’s financial watchdog will set aside about $1 million EUR to monitor cryptos and fintech-related activities during 2019.
One of the key priorities of the agency is to document the financial well-being of the bloc and it will be keeping a close eye on innovations like crypto assets this time. The agency explains that it will help to coordinate regulatory initiatives in the region and that wants to achieve a coordinated approach to the regulation and supervision of this new market and its participants.
A Framework Push
Another plan of the ESMA is to implement a framework based on the product intervention powers that the EU’s Markets in Financial Instrument Directive (MiFIR) has. This includes new measures on the provision of contracts for differences (CFDs) and binary options to retail investors.
Some of these measures include a ban on the marketing of crypto products, distribution or the sale of binary options to retail investors and some other marketing restrictions that will be enforced. The measures will also include limiting leverage on opening positions and to use incentives of a CFD provider, as well as sending standardized risk warnings to the public.
ESMA has called out for public input on CFDs for cryptos and similar products back in January. The regulator has affirmed at the time that the company would use the MiFIR regulatory framework and it was considering restrictions at the time.
In short, the plans for the ESMA in 2019 include to monitor and to gather intelligence about financial crypto assets and companies that deal with the blockchain technology.