- ESMA is budgeting 1 million Euros to aid its fight against illegal practices in the fintech and crypto world.
- ESMA looking to proactively monitor the crypto space and promote stability of the financial markets.
In a bid to sanitize its Fintech and cryptocurrency industry and foster consumer protection, the European Securities and Markets Authority (ESMA) is setting aside 1 million euro for use in carrying out regulatory activities in the burgeoning blockchain technology ecosystem, as detailed in its 2019 Annual Work Program released on October 4, 2018.
ESMA to Boost Fintech and Crypto Oversight
As contained in the document, ESMA, the EU’s financial markets regulatory watchdog is setting aside a whopping 1 million euro to pursue digital assets and Fintech regulation.
The document which was drafted on September 26, 2018, but only published on October 4, 2018, clearly outlines the body’s major priorities, proposed budgets, and regulatory activities.
ESMA has made it clear that it’s looking to closely monitor the financial activities and retail investor trends in the digital assets ecosystem to quickly spot risks and challenges and take necessary actions to promote best practices.
“The exercise also assists ESMA in playing a proactive role in market intelligence gathering and formulating metrics that will guide the financial watchdog in determining when and where it will employ its product intervention power.” ESMA declared, adding that its monitoring activities also helps in ensuring that NCA’s use its power in a coordinated and coherent manner.
The regulator has now budgeted EUR 1,107,360 to help it create a framework for monitoring investor trends, financial activities, gathering of market intelligence data and more.
ESMA Committed to Investor Protection in the Financial Markets
Established on January 1, 2011, ESMA is focused on putting in place a uniform rulebook for the European Union financial markets and provide market supervision.
On September 28, 2018, the organization renewed the existing embargo placed on the marketing, distribution or sales of contracts for differences (CFDs) to retail investors.
While Europe has maintained a relatively liberal stance towards bitcoin and other digital assets in recent times, financial regulators in the region have been doing their best enlighten citizens of the inherent risks in cryptocurrency investing.
Earlier in February 2018, ESMA and other key European regulators warned investors to be mindful of the super volatile nature of bitcoin and the altcoins.