National supervisors are currently tasked with overseeing the crypto markets, but French regulators have proposed huge reforms to strengthen financial regulation across Europe. The plan will give the European Securities and Markets Authority, the Paris-based EU regulator, increased powers. Regulators want tougher rules to control the ever-growing cryptocurrency market over fears that they are being used by criminals to fund drug trafficking and other illegal activities.
The current European crypto market is currently estimated at over £ 1,000 billion.
But major markets collapsed, with Bitcoin prices plunging 8% and Ethereum down 21%.
Dogecoin fell 21% and Binance Coin, XRP and Cardano also fell in the past 24 hours.
French regulators, the Autorité des marchés financiers, said: “Granting Esma the power to directly supervise public offerings of crypto-assets in the EU and providers of crypto-asset services would create obvious economies of scale. for all national supervisors and would concentrate expertise effectively, for the common good European benefit.
“The EU should seriously consider a move towards truly centralized supervision of certain categories of entities and activities.”
The AMF is a strong advocate for the need to reform financial regulatory processes and standards across Europe.
He wants to strengthen the single market after Brexit and contribute to the EU’s economic recovery after the coronavirus pandemic.
Binance, one of the largest crypto exchanges in the world, moved its operations to Malta in 2018.
The Maltese regulator said last year that it was not responsible for regulating the stock market.
He pointed out that there was lingering uncertainty over who oversees the company’s activities.
The French authorities want new control tools to be given to Esma, such as “letters of non-action”.
The measures are used by their US counterparts to provide advice on the interpretation of financial rules and regulations.
MUST READ: Von der Leyen reprimanded by US CFO for ‘inflexible’ recovery
“Another major change seems unlikely in the short term given that Esma’s responsibilities and powers have recently been extensively reviewed,” she told the FT.
The AMF is also considering requiring that European politicians leave key decisions to regulatory experts.
Ms Patterson said: “I have not seen any clear evidence that the co-legislators of the European Parliament and the Council want their powers to be reduced.”