ESMA was founded back in the year 2011 in Paris with the objective to developa uniformrulebook for theEuropean Union[E.U.] financial markets,along with providing additionalmarketsupervision. The authority has established Tech. Committees innumerousindustrial fields along within in IT field, andadditionally workswithin thefield of securities legislation and regulation.
For its 2019 Annual Work Program, the ESMA expects a1.1 MlnEuroprogram with its new objectivesthatembraceregulation andsupervisorytreatmentof arisingfinancialactivities,specializing infintech and crypto assets.
Within theproclaimedframework, the ESMAwouldalso determinerisksassociated withsuch activities and trends,and supplyrelevantrecommendationand proposalswhicheverrequired. Moreover, the ESMA has set a goalto supplyguidanceand facilitate the implementation of the Markets andfinancialInstruments Directive [MiFID]so asto makemarketsmore clear.
The program is expected to:
“Achieve a coordinated approach to the regulation andsuperordinatetreatmentof newor innovativemonetaryactivitiesand providerecommendationtopresentto the E.U.institutions, market participants orinvestors.”
Earlier in this month, the ESMArevealedits plansto increaserestrictions on contracts fordifferences[CFD’s],along with crypto-based ones. The agencyexplainedits move with significantinvestorprotection concernrelated totheoffering of CFD’s to the retailinvestors.
Even in March, the ESMA build itsrequirementsfor CFDs. “Due tothe precisecharacteristics of cryptocurrencies asan asset classthemarket forfinancialinstruments providing exposure to cryptocurrencies,likeCFDs,will beclosely analysed, and ESMAwouldassesswhether or notstricter measuresareneeded,” the regulator explained.
In Sept., Belgianthink tankBruegelreferred to E.U. ministers for unified legislation on cryptocurrencies along with more scrutiny onhowthey’redistributed to investors. The move reportedly comesso asto manage associated riskswhilerealizing the potential of blockchain technology.