This week in TechREG in Europe, the Middle East and Africa (EMEA), global regulators and several central banks discussed the need to regulate the cryptocurrency space.
As the European Central Bank (ECB) called for swift implementation of new European Union crypto rules, the Financial Stability Board (FSB) announced that it plans to propose new rules in October. .
EU lawmakers have taken another step to establish new rules that could impose certain limits on credit card debt and overdrafts, and UK lawmakers have sent letters to Visa and Mastercard asking for explanations of cross-border fee increases.
ECB urges swift implementation of MiCA
The ECB released several reports on Monday (July 11) warning that financial stability risks stemming from crypto assets are increasing, calling for the “urgent implementation of appropriate regulatory, supervisory and oversight frameworks.” Although the message is not new, the regulator adds a call to action. Following a warning about stablecoins and the importance of having appropriate regulatory frameworks in place, the ECB called on policymakers and member states to implement the Crypto Asset Markets (MiCA) regulation “as a matter of urgency.”
Financial Stability Board to Propose Crypto Regulation in October
In the latest example of increasing scrutiny of cryptocurrencies in the EMEA region, the FSB will propose crypto regulations in October to strengthen regulation of the sector. The council oversees the global financial system, and while it plans to create local regulations in this case, it has also pushed for oversight of cryptocurrency and digital assets that span all regions of the world.
The Banque de France enters the second phase of the wholesale CBDC project
Banque de France (BDF) Governor Francois Villeroy de Galhau said the BDF has launched the second phase of experimentation with a wholesale central bank digital currency (CBDC), which could be used to streamline domestic and cross-border transactions between banks. In a speech announcing the news on Tuesday, July 12, Galhau first began discussing the more familiar topic of a retail CBDC for the Eurozone and the ECB’s continued efforts to create a usable digital euro for years to come. .
UK Parliament Launches Crypto Inquiry
The UK Parliament’s Treasury Committee is investigating the role cryptocurrencies play in the UK and is asking the public for their input. The committee said on Wednesday (July 13) that the investigation will examine “the opportunities and risks that crypto assets may present to consumers, businesses and government (and related bodies)”, as well as “the potential impact of the Distributed Ledger Technology on Financial Institutions”. , including the central bank, and financial infrastructure.
Global Regulators Call For Interoperable Stablecoins, CBDC
The Bank for International Settlements (BIS) and the International Organization of Securities Commissions (IOSCO) released their guidance on Wednesday on the application of financial market infrastructure rules to stablecoins, including entities that provide stablecoins. The main message is that when a stablecoin reaches the point of being considered significantly important, it must comply with the same safeguard rules as any other traditional form of payment.
Big Tech, Data Privacy
Meta’s future in the EU hinges on Irish authority’s draft data regulation
The outcome of the European Data Protection Board (EDPB) discussions that took place on Tuesday could have a direct impact on Meta’s ability to provide services like Instagram and Facebook in Europe. Last week, Ireland’s data protection regulator published a draft ruling that could prevent Meta from transferring user data from the EU to the US. WhatsApp would not be affected by the decision.
UK regulator urges government to review internal use of WhatsApp and private email
The UK’s Information Commissioner’s Office (ICO) released a report on Monday into the government’s use of private correspondence channels like WhatsApp, private emails and messaging apps to conduct official business. Due to the risks identified in the report, the ICO urges the government to review its policies regarding the use of these channels.
UK Parliament urges Visa and Mastercard to explain swipe fee hike
The UK Parliament’s Treasury Committee on Wednesday sent letters to Visa and Mastercard asking them to explain their increases to cross-border interchange fees following the UK’s exit from the EU. Companies have until July 27 to respond. The probe comes after the payment systems regulator explained in a July 4 letter to UK lawmakers the two market reviews it plans to conduct on processing fees and cross-border interchange fees.
EU lawmakers agree on rules to limit credit card debt and overdrafts
The European Parliament’s Internal Market and Consumer Protection Committee on Tuesday gave near-unanimous approval to new EU rules which lawmakers say ‘aim to protect online consumers from credit card debt , overdrafts and loans unsuited to their financial situation”. The recent approval by the committee paved the way for the start of interinstitutional negotiations between the parliament, the council and the European Commission, most likely after the summer holidays.
UK regulator urges banks to treat small businesses better or face regulatory action
The UK’s Financial Conduct Authority (FCA) has warned banks to provide better service to small and medium-sized enterprises (SMEs) struggling with debt or facing tougher regulatory measures. In a letter to CEOs of major UK retail banks published on Tuesday, FCA chief executive Sheldon Mills said the agency was “disappointed to find repeated examples of poor customer outcomes and failures treat customers fairly” when reviewing customer records.
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