The digital asset landscape continues to develop Europeas European Central Bank (ECB) establishes an innovation hub with 70 participants to test their digital Euro project, and the UK’s draft digital asset legislation proposes that foreign Stablecoin issuers and Defi may not be regulated in the country.
Digital euros
On May 5announced that it had established an “innovation platform” to cooperate with European stakeholders on its Digital Euro projectThe block’s long -mounted central bank Digital Currency (CBDC).
According to the ECB: “Simulate” the Innovation Platform, the planned digital Euro ecosystem, where the ECB provides technical support and infrastructure for European intermediaries to develop innovative digital payment functions and services at European level. “
Following a call to interest published in October 2024, around 70 participantsIncluding start -ups, merchants, fintechs, banks and other payment services providers, have signed up to participate in the platform. Among them were Global Professional Services Company Accenture (Nasdaq: ACN), Swiss Telecommunications Company Swisscom (Nasdaq: SWZCF), Spanish Bank Caixabank (Nasdaq: Cixpf) and ‘Big Four’ audit firm KPMG.
Participants joined one or both of two defined “work currents,” “pioneers” and “visionaries.” The former will focus on conditional paymentswhere a payment is only triggered if a condition is met, such as the arrival of a package, while the latter will investigate other potential use cases with social effects, such as financial inclusion.
“We welcome the enormous interest that the market participants have shown in this exciting initiative,” said board member Piero Cipollone. “The breadth and creativity of the proposals highlights the potential of digital euro as a catalyst for financial innovation in Europe, including the development of new solutions that further improve the payment experience for Europeans and create market (opportunities).”
Travel so far
EU has been investigating the possibility of a CBDC for several years, with Launched the digital euro ”Preparation phase“Back in November 2023.
In November 2024 Required partners To test conditional payments in a CBDC simulation to Start in February 2025 And open Applications for partners who are willing to Explore tokenization and other innovative use cases.
In February this year announced It extended its initiative to resolve transactions between institutions with a wholesaler CBDC payment system.
The following month, ECB President Christine Lagarde confirmed The bank’s commitment to the project and said that the team behind the digital euro was “focused on speeding up the pace” and highlighting how they are campaigns to get other stakeholders such as the European Parliament and the European Commission on board.
Lagarde also said that the test phase for digital euros is scheduled to be completed in October, after which the ECB will publish a final report and decide to issue a CBDC.
However, this decision would ultimately be covered by the legislation of the European Parliament and the approval of the European Commission.
UK Draft Digital Asset Regulation
In order not to remain by its continental neighbor, Britain has also been busy setting the stage for digital assets to thrive in the country.
On April 29, HM Treasury released its draft digital asset legislationAlso called “Future Financial Services Regulatory Regime for Cryptoassets”, which aims to protect consumers and make the UK an attractive place for digital asset companies.
“Through our change of change, we make Britain the best place in the world to renew – and the safest place for consumers,” Chancellor of the Tax Rachel Reeves said, in April 29 statement. “Robust rules on crypto will increase investors’ trust, support the growth of fintech and protect people across the UK.”
The draft of regulations is high level, with detailed regulatory authority delegated to Financial behavior authority (FCA), Britain’s top financing sector.
However, the draft describes several high -level digital asset activities that would provide a unit within the framework of the UK regulation. Namely, to run a digital asset trading platform, trade in digital assets, trade with digital assets such as agent, arrange offers for digital assets, protect and care for digital assets, digital assets and issue a StableCecoin from the UK
Particularly absent from these groups are foreign digital asset units that only engage indirectly with British consumers through a regulated trading platform or retailer, and foreign units that only cooperate with institutions – which provide these institutions do not act as intermediaries for British consumers.
This means that some digital assets suppliers will fall outside the “regulatory circulation”, including foreign Stablecoin issuers, even if residents of the UK use their Stablecoin.
“Real” Decentralized funding (Defi) Activities would also fall outside the scope of the proposed regulation.
“Where there is no person who can be seen to conduct the business through operations, requirements for applying for a permit will not be applicable,” said the Treasury. However, it added that FCA would determine in all given cases “if there is a sufficiently controlling party or parties that should be the subject of the requirement to be approved.”
Treasury is looking for feedback on the draft regulations until May 23, 2025.
Look: Find ways to use CBDC outside digital currencies
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