- An industry association EACH, built from the clearinghouses of Europe gave a public notification about stating their preference for a single classification to cover all forms of cryptocurrencies across Europe.
- EACH has recently expressed its concerns pertaining to the proposed context to regulate cryptocurrency.
- EACH described that crypto wallet providers have been already defined officially with the regulations of AMDL5
An industry association EACH, built from the clearinghouses of Europe gave a public notification about stating their preference for a single classification to cover all forms of cryptocurrencies across Europe.
However, the country has planned to emphasize a more extensive classification system for handling the crypto ecosystem. This will result in more pressure on the clearinghouses as they have to handle the administrative load.
EACH was quick to highlight that it welcomes the consolidation
The statute dubbed on an EU structure for the crypto-assets market is looking to further adding standardization to the regulations across the European Union, specifically for the cryptocurrencies.
The statement concerning this new law has arisen from the European Association of CCP Clearing Houses (EACH). It is an association representing 15 central counterparty clearinghouses located within Europe.
European Association of CCP Clearing Houses has recently expressed its concerns pertaining to the proposed context to regulate cryptocurrency. The Belgium-based organization EACH has members includes Deutsche Boerse AG, ICE, and LSE clearinghouses’ members.
Although the European Association of CCP Clearing Houses was keen to welcome this consolidation to avoid regulatory arbitrage, discrepancies, and market fragmentation.
However, to be very clear with its intentions, EACH aspires to a different and appropriate classification of digital assets between payment effectiveness, security, or a hybrid asset and was of critical importance for future business.
Further, the association pointed out that a steady approach is required to regulate trading, asset management, and post-trading, mostly for security tokens.
EACH is on the verge to explore the application of blockchain technologies
With respect to their clearing activities, where they receive collaterals for preventing default risks from spreading throughout the system, the association testified the members of EACH recognize the potential influence that DLT technologies have on their business.
Adding to this they said that EACH is already involved in the verge to explore the application of blockchain technologies which they find might bring benefits in certain areas of CCP activities.
EACH described that crypto wallet providers have been already defined officially with the regulations of AMDL5. In this way, these wallet providers are considered as “obliged entities,” and should be subsequently regulated.
EACH publically stated that the benefits of clearing transactions through CCP will not be rendered outdated. It clarified that some features, majorly the performance of collateral, risk and default management processes as well as multilateral mesh, will remain an exclusive feature of central clearing.