Last week, the European Parliamentary Research Service (EPRS) released its study ‘Emerging risks in crypto-assets’, focusing on the financial services’ regulatory and supervisory challenges. It noted the level of interest from consumers and investors, the cross border nature of the assets, which means there are potential jurisdiction issues, and the fact that there’s often a lack of an accountable entity. The combination means it’s comparatively tricky to regulate. As part of its assessment, it simulated the economic impact of crypto-assets over ten years as between €705 – €760 billion ($830-$895 bn), depending on legislation.
A leaked version of the EU’s legislative proposal on crypto-assets (MiCA) was released just last week.
In this study, the EPRS looked into the economic benefits and associated risks of crypto-assets. As with MiCA, the reasoning behind the research is due to crypto-assets’ complex and unregulated landscape. That may hinder the potential for business growth, technological innovation and expose consumers and investors to substantial risks.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
