European Regulators have Decided to Put Digital Euro on Hold
The regulators of the European Union are taking an easy approach toward their Digital Euro program. A bill concerning the distribution of the newly digitized euro was scheduled for review on 28th June. However, recent media reports have confirmed that the bill presentation date may now be postponed.
The incident is followed by the unexpected leak of the bill draft. The leaked document has revealed rules covering privacy laws and technical issues that are related to the digital euro. This is not the first time that the bill in question has been delayed.
The bill deals with the finalization of the European Central Bank or ECB on whether to issue the digital euro or not. Before the current review date, the bill was scheduled for presentation in May this year. The commission has refrained from offering an explanation for the delay or issuing the next date for the presentation of the bill in question.
Various Finance ministers from the EU zone also discussed this bill. Irish FM Paschal Donohoe said that at present many government officials wish to support the digital Euro however there are concerns about developing the narrative.
The Need for DeFi Market Regulation
The Autorite des Marches Financiers or AMF is the financial enforcer and regulator in France. The financial agency has called for the coordination of financial regulators around the globe to supervise the DeFi markets. The agency has also published a detailed paper concerning the regulatory framework for DeFi entities.
This paper has claimed that the risks involved with the DeFi sector are greater than the traditional financial markets. French regulators are calling for a stringent approach by introducing money laundering and terror financing reporting in the area.
At the same time, they have also called for the implementation of KYC checks. Meanwhile, Financial Stability Board has claimed that it is already working with the global standard setters to bring regulatory imposition on DeFi.
Meanwhile, the IOSCO, or the International Organization of Securities Commissions is set to issue new regulatory clarity for DeFi markets by the end of 2023 in association with FSB.
Additionally, the regulators from AMF have maintained that the coming years are going to be more challenging for the DeFi markets. The regulatory agency also claimed that the DeFi sector needs to offer better investor protection to avoid incidents like the Terra-Luna crash.
UK Banking enterprise NatWest has implemented a withdrawal limit of 20,000 euro. According to the local media outlets, the bank has mandated that consumers submit a 24-hour prior notice before proceeding to make large withdrawals.
This limit implementation is going to directly impact the consumers who are using their NatWest accounts to make cryptocurrency transactions and hoping to clear out their holdings and convert their holdings into crypto reserves such as Bitcoin and others. The bank officials at NatWest have cited that they have imposed the withdrawal limits to curb crypto-related crimes.
On the other hand, Binance exchange has reportedly claimed that it has applied for deregistration with the Financial Conduct Authority or FCA in the UK. However, as per the FCA website the cryptocurrency exchange has filed for the deregistration request as far back as May 30th this year. Binance has recently pulled out of other European territories such as Netherlands and Cyprus.
However, Illir Laro the Sub Regional Manager for Growth in Europe and UK markets has maintained that Binance is currently retracing its European branches to become compliant with MiCA or Markets in crypto assets regulations that are finalized by EU regulators.
