ESMA will issue 1,1 EUR million to monitor the cryptocurrency market

From a document published on October 4 by the European Financial Market Authority (ESMA), this office will spend over EUR 1 million in future budget expenditures over 1 to monitor fintech assets and cryptocurrency projects. Thus, Europe is following the United States, where the regulator has taken similar actions some time ago.

Cryptocurrencies in the viewfinder

ESMA sets a new goal for the year 2019 to regulate and supervise new financial activities related to financial technology, ICO and cryptocurrencies. The plan is to be implemented due to the newly created fund with a value of EUR 1,1 million. As part of its work, ESMA wants to identify the risks associated with these projects and then propose to prevent them. The European regulator also wants to issue guidelines that will cover the cryptocurrency market.

According to ESMA, thanks to these measures it will be possible to: "Achieving a coordinated approach to regulating and supervising new or innovative financial activities and advising them on EU institutions, market participants or consumers".

At the end of September the European regulator has extended the restrictions on the CFD market by 3 months, explaining this with the need to maintain an adequate level of protection for retail clients. At the moment, one can only assume that the cryptocurrency market, which is perceived as highly risky, can wait for similarly rigorous guidelines that will limit potential threats.