ESMA Chair Steven Maijoor has delivered a keynote address at the 4th Annual FinTech Conference, entitled ‘˜Innovation on a Grand Scale’, in which he highlighted the upcoming challenges in digital finance, including BigTech and Distributed Ledger Technology applications, such as crypto-assets and stablecoins. He stressed the need for regulators to follow a risk-based approach to innovation, whatever the technology or the business model.
On crypto-assets, he recalled that ESMA’s Advice to the Commission (January 2019) explained that these require a case-by-case assessment to determine whether they fall within the scope of EU law. He also called for the EU to establish ‘a common, holistic approach to the regulation and supervision of crypto-assets. We need a regime that ensures the right level of protection without stifling innovation.’
On stablecoins, he stressed the need for a coordinated approach to digital finance at European and global level.