EU to Designate CNMV, Bank of Spain, and ECB to Supervise Cryptos and the new framework is expected to be ready at years end of 2021.
The European Union has announced that it will designate the European Central Bank (ECB), Bank of Spain, and the National Stock Market Commission (CNMV) to supervise crypto-related activities in the country. According to Cinco Dias, a draft revised of the MiCA, the EU’s proposed regulation of the crypto markets, granted legal powers to the three bodies to oversight cryptocurrencies.
The ruling is expected to be ready at the end of the year or at the beginning of 2022, which also asks that the crypto platforms or virtual currencies issuers should have offices in the EU and domestic licenses. That said, exchanges should apply from zero, as this draft asks them to re-apply comply with the new guidelines and fall under the supervision of the three designated bodies. Furthermore, Cinco Días stated that cryptocurrencies management funds are also included in the regulation.
But the media outlet highlighted that one of the most controversial points of the draft is the exclusion of the non-fungible tokens (NFTs). “While these crypto assets can be traded on the markets, accumulated speculatively, and in limited cases used as a medium of exchange, they are not easily tradable.,” the document said.
In the case of obtaining licenses in Spain to run a crypto-related business that fell under the regulation of the new ruling, these companies should apply before the CNMV and the Bank of Spain. However, the ECB reportedly asks that the framework shouldn’t be used for the central bank digital currencies (CBDCs), such as a forthcoming digital euro.
Recently, the Spanish Congress of Deputies voted in favor of a law that requires Spaniards to report their overseas cryptocurrency holdings through tax filings. According to the Spanish government, the new ruling goes in line with the current circumstances surrounding the crypto markets. Additionally, crypto holders should disclose all their transactions performed with their tokens and should inform them through the “720 Form of Declaration of Assets and Rights Abroad about the Possession of Cryptocurrencies Abroad.”
