On Thursday 10 September, MEPs in the European Parliament's Committee on Economic and Monetary Affairs (ECON) adopted by 44 votes to 5 with 8 abstentions, an own-initiative report on digital finance (see EUROPE 12500/20), drawn up by Czech MEP Ondřej Kovařík (Renew Europe), which makes a series of recommendations to the European Commission, in view of its action plan on ‘FinTech’, expected on 28 October.
“The Parliament’s endorsement of this report highlights the importance that the European Parliament places on digital finance in future EU legislation, particularly in the financial sector”, explained the rapporteur to EUROPE after the vote.
In general, the final text calls on the Commission to deploy “a proportionate, risk-based, cross-sectorial, holistic and outcome focused approach” in its future work.
The political groups agreed to call for the establishment of a European framework for crypto-assets, including an “open and comprehensive” Europe-wide taxonomy for new products.
This framework should, according to the text, provide guidance on the applicable regulatory, prudential and supervisory processes, as well as on the treatment of crypto-assets and address the gaps in existing EU legislation.
MEPs also call on the Commission to create a bespoke regulatory regime for new activities, such as initial coin offerings (ICOs) and any crypto-assets which do not fall under the existing regulatory framework.
As such, the text notes that stablecoins represent a “unique category of crypto-assets” and calls on the Commission to develop a legislative framework that, inter alia, ensures a stable conversion rate between stablecoins and fiat currencies.
While MEPs want this framework to provide clarity and legal certainty, they also want it to ensure that there is a “high level of consumer and investor protection, market integrity and financial stability”.
It should be noted that the final text also calls on the Commission to extend the list of entities subject to anti-money laundering and anti-terrorist financing obligations to ensure that all activities involving crypto-assets are subject to these rules.
Other requests agreed by the political groups include a legislative proposal regarding cyber resilience in the financial sector and a common European framework for a Europe-wide “sandbox” for digital financial services, after a thorough evaluation.
“The treatment of data is also of utmost importance, and the report addresses a number of points, including ensuring that data access rules are simplified, that there is equality in the treatment of data between large and small operators and this while always keeping in mind the general data protection regulation”, said Mr Kovařík.
Finally, the text calls on the Commission and Member States to ensure that the development of digital finance “leaves no one behind” and to take steps to strengthen digital and financial literacy. (Original version in French by Marion Fontana)