In a significant move to bolster the EU's capital markets, the European Commission is preparing to unveil a comprehensive plan that will unify the oversight of stock and cryptocurrency exchanges under a single regulatory authority. The document provides a justification for the fact that this initiative aims to enhance the competitiveness of the EU in comparison to the US market.
Expansion of ESMA's Jurisdiction
The proposed plan will extend the jurisdiction of the European Securities and Markets Authority (ESMA) to encompass not only traditional stock exchanges but also cryptocurrency exchanges and crypto asset service providers. This expansion is designed to streamline regulatory processes and create a more cohesive framework for market participants.
Anticipated Release of Draft Proposal
The draft proposal is anticipated to be released in December 2023 with a focus on addressing the current regulatory fragmentation that hampers the growth of startups in the region. By improving the regulatory landscape, the European Commission hopes to foster innovation and attract investment in the EU's capital markets.
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