11.14.2019

AFME Calls For Regulatory Convergence On Crypto-Assets

11.14.2019

The Association for Financial Markets in Europe (AFME) has published a new paper setting out five recommendations to deliver supervisory convergence on the regulation of crypto-assets in Europe.

The paper’s recommendations are intended to encourage collaboration between regulators in Europe and work towards a common approach to the regulation and development of crypto-assets in financial services.

James Kemp, Managing Director, Head of Technology and Operations at AFME, said: “There has been a rapid rise in the development of crypto-assets, which could offer significant benefits for wholesale markets. However, to realise those benefits, it is increasingly important that crypto-asset regulation is coordinated at the regional and global level to foster innovation, while promoting financial stability and ensuring a level playing field. This should start with forming a common understanding of the various crypto-asset terms and activities in financial services”.

In this paper, AFME provides an overview of the crypto-asset taxonomies and regulatory approaches in use by a sample of National Competent Authorities across Europe, outlining the areas where divergence in regulation exists.

The paper finds that while there is some convergence on the methods used to classify different types of crypto-assets, there is significant divergence in the methods used to regulate crypto-assets. This creates uncertainty for market participants, which limits innovation.

Europe has the potential to become a global leader in crypto-assets and to facilitate the emergence of safe and innovative products and services at scale. In order to reduce fragmentation and deliver supervisory convergence in the regulation of crypto-assets in Europe, AFME proposes the following five recommendations for regulators to consider:

  • Establish a pan-European crypto-asset taxonomy;
  • Provide clear expectations for market participants on the process for issuing crypto-assets;
  • Apply activities-based and technology agnostic regulation;
  • Apply existing regulation for regulated activities, with any necessary amendments if required;
  • Prioritise convergence of regulatory frameworks with other global and regional initiatives.

The paper has been developed with expertise from AFME member firms to provide a further assessment of the crypto-asset regulatory landscape in Europe.

Source: AFME

Technology costs in asset management have grown disproportionately, but McKinsey research finds the increased spending hasn’t consistently translated into higher productivity.
#AI #Fiance

We're in the FINAL WEEK for the European Women in Finance Awards nominations – don't miss your chance to spotlight the incredible women driving change in finance!
#WomenInFinance #FinanceAwards #FinanceCommunity #EuropeanFinance @WomeninFinanceM

ICYMI: @marketsmedia sat down with EDXM CEO Tony Acuña-Rohter to discuss the launch of EDXM International’s perpetual futures platform in Singapore and what it means for institutional crypto trading.
Read the full interview: https://bit.ly/45xRUWh

Load More

Related articles

  1. Broadridge survey shows investors emphasize traditional finance metrics over crypto-specific factors.

  2. Token representations of blue-chip UK traditional equities and funds will trade alongside cryptoassets.

  3. The new offering serves both regulated and unregulated digital asset businesses globally.

  4. Investors can use smart contracts for trading and lending with tokens alongside traditional cryptoassets.

  5. Unbacked crypto-assets do not perform any socially or economically useful function.

We're Enhancing Your Experience with Smart Technology

We've updated our Terms & Conditions and Privacy Policy to introduce AI tools that will personalize your content, improve our market analysis, and deliver more relevant insights.These changes take effect on Aug 25, 2025.
Your data remains protected—we're simply using smart technology to serve you better. [Review Full Terms] | [Review Privacy Policy] By continuing to use our services after Aug 25, 2025, you agree to these updates.

Close the CTA