New EU crypto assets rules to be released by 2024: report

The European Union (EU) will release a new set of rules by 2024 — with the aim to streamline cross-border payments — by leveraging blockchain and crypto-assets such as stablecoins.

This approach by the EU is part of a broader effort to encourage a shift towards digital finance, especially at a time when the pandemic has driven more people to go cashless as a preferred way to carry out transactions, according to a report by Reuters. 

“By 2024, the EU should put in place a comprehensive framework enabling the uptake of distributed ledger technology (DLT) and crypto-assets in the financial sector,” the documents said, according to the report. “It should also address the risks associated with these technologies.”

The document also said that the European Commission — the EU’s executive branch — would release a draft law to explain how the existing regulatory framework will be put into action and how new regulations will be introduced as needed. Moreover, once anti-money laundering and identity checks are in shape, the bloc, too, will set up official regulations and allow new customers to use financial services, per the report.

The news comes a week after a senior official at the EU’s executive branch addressed the topic of EU finance ministers — from Germany and France — asking for tighter controls on stablecoin issuers as The Block previously reported.

© 2020 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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