Germany's new ruling coalition calls for 'joint European supervision' of crypto in ruling agreement
November 27, 2021, 1:00PM EST
2 min read
A trio of political parties in Germany struck an agreement this week that will see them assemble a national governing coalition. Part of that agreement, according to the German-language text, includes a call for European countries to work together to monitor activities in the crypto sector.
Per a rough translation of the text, the three parties pledged to make Germany a hub for companies in the technology sector, particularly those focused on fintech. Specific policy pledges include a framework for fintechs and an examination of a legal approach to issuing digital stocks.
The agreement calls for "a level playing field" within Europe for new, digital-centric business models, including those that feature crypto or digital assets at the heart. "We need a new dynamic towards the opportunities and risks from new financial innovations, cryptoassets and business models. We advocate for a level playing field with equal level playing field within the EU, between traditional and innovative business models and vis-à-vis large digital companies."
At the same time, the parties call for "joint European supervision for the crypto sector."
"We oblige crypto asset service providers to consistently identify the beneficial owners," the agreement goes on to say, per a translation.
The parties also gave a nod to the long-term project of introducing a digital euro.
"We will continue the process of introducing a digital euro as a complement to cash, which will be a legal tender in Europe that is accessible to all and can be used universally," the document states. "Europe also needs an independent payment transaction infrastructure and open interfaces for barrier-free access to digital financial services for all consumers and merchants."
As cryptocurrencies become increasingly mainstream, regulators, the media and policymakers are paying more attention to the financial crime risks associated with them. But what are the biggest compliance challenges crypto firms face, and what does a best practice AML program look like?
Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.
TRON DAO has announced the launch of a $10 million incentive fund in light of recent events to support Terra developers migrating to the TRON ecosystem, including TRON’s EVM compatible cross-chain solution BitTorrent Chain (BTTC), which helps facilitate the seamless transfer of assets across mainstream public chains, including TRON, Ethereum, and BNB Chain.