The chairman of the financial regulator of France Robert Ofel suggested a new method to cryptocurrency regulation, which will promote the development and expansion of innovative projects.
Remarking at the recently concluded Fintech and Regulation Summit, Ofel stated that with the continuous growth of the cryptocurrency industry, Europe must develop an applicable regulatory strategy.
Back in September 2020, the European Commission recommended a new regulatory framework for digital assets. The plan included a pilot mode for the financial markets in which digital currency can be exchanged and settled.
The commission also instituted a policy called “Regulation of Crypto asset Markets” for digital assets that are not considered financial instruments. This classification includes providers of digital wallets and the ever-growing crypto exchanges.
Remarking on these rules, Ofel noted that he supports an alternative legislative plan in the shape of a pilot regime, which involves the abandonment of some provisions of the existing rules. According to him, in this scenario, a modern financial market may develop.
These measures involve increasing the range of current technologies to be examined, reinforcing business models utilizing decentralized finance and blockchain.
