The proposed law aims to align national regulations with EU Regulation (EU) 2023/1114 on crypto-assets, ensuring uniformity across Member States while fostering innovation, fair competition and investor protection. It introduces a comprehensive framework for crypto-asset markets, including provisions for issuing permits to crypto-asset service providers and regulating various token categories, such as asset-referenced tokens and electronic money tokens. The law designates the Financial Supervision Commission (KNF) as the competent authority responsible for supervising and enforcing regulatory compliance. It outlines obligations for token issuers and service providers, including reporting requirements to the KNF and granting the authority additional powers to request necessary information for oversight purposes.
Moreover, the law introduces supervisory measures to prevent violations, including the ability to suspend public offerings of crypto-assets and impose sanctions on offenders. These sanctions may include fines, arrest or imprisonment, depending on the severity of the offence. Additionally, the law addresses confidentiality in crypto-asset services, defining situations where disclosing professional secrets to designated authorities is permissible.
To implement these measures effectively, the proposed law necessitates amendments to various existing laws governing financial and regulatory matters. These amendments aim to streamline the regulatory process and ensure consistency with the overarching goals of the EU Regulation.
Overall, the proposed law seeks to create a robust regulatory framework for crypto-assets, balancing the need for innovation and market development with investor protection and financial stability. By harmonising regulations and empowering supervisory authorities, it aims to enhance consumer confidence, facilitate cross-border activities, and contribute to the competitiveness of EU Member States in global financial markets.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
