“HARMONISATION” is a key word within the EU now. Efforts are now underway to harmonise the national tax systems in order to put an end to tax rates, benefits, and exemption competition across the EU. The next inline are crypto-assets. The EU has decided to adjust to what is looking inevitable in our fast-changing world – the crypto-assets. While the traditional banks are getting tougher on their clients, Electronic Monetary Institutions (EMI) have been mushroomed in the EU to close the gap for small and medium-sized businesses (SMEs) that are struggling to open or maintain a traditional bank account. While there is a gap in regulating the crypto-assets on the EU level, some of the national authorities of the EU Member States have already introduced the national legislation regulating the crypto-assets. The EU has decided to close the legal uncertainty gap and bring all crypto-assets under the umbrella of the common EU regulation. The move should be considered as the positive one as many consider that the crypto-assets would increase its importance as the financial tool.
In particular, EU authorities want to give a clear definition of various types of crypto-assets, to bring the crypto-assets under the Financial Instruments Directive II (MiFID II), and to cover blockchain-based platforms as well.
If the EU has managed to create an attractive legal framework for crypto-assets it might have a competitive advantage. However, other jurisdictions are also working on to remain in. For example, Singapore has introduced the Payment Services Act in 2019. The legislation has embraced crypto-currencies transactions as well. Some licenses for Payment Services have been issued in Singapore. The race to stay ahead of competitors in attracting crypto-assets providers is officially on.