The European Union continues to regulate cryptocurrency in the continent to tighten the safety of the people. On August 2, the European Securities and Markets Authority issued a tender to gather information on trading data involving cryptocurrency transactions.
The regulator seeks off-chain data – crypto-based transactions that do not come from the blockchain.
ESMA said that the off-chain data includes spot trades, derivatives in centralized exchanges, and all centralized platforms.
ESMA also stated that the contract ceiling will be €100,000, “corresponding to the maximum duration of the framework contract” of four years.”
The announcement followed up after the European Council proposed an Anti-Money Laundering supervisor to monitor specific crypto asset providers since June 2022. The newest regulator will maintain authority over high-risk financial entities – specifically cryptocurrency- to stop the rampant unregulated crypto transactions within the continent.
Possible Pressure for Nations Without Regulations
USA, EU, Russia, China, South Korea, and Singapore – are some of the few nations that plan to halt the “wild west” era of cryptocurrency for a safer future under the watchful eyes of governments. With these powerful countries implementing regulations, it could pressure other countries to do the same as well – especially ones with high crypto activities, including the Philippines, Vietnam, and Turkey.
Their regulations would influence politicians from other countries to do the same as well, especially if more scams and hacks continue to happen.