Financial institutions and technology companies in Europe are demanding faster action from the European Union (EU) to update existing rules governing blockchain-based transactions. Recently, 39 different institutions from both the finance and technology sectors sent a joint letter to the European Commission and the European Parliament, emphasizing that legislative changes should accelerate.
Demand for speed from finance and technology giants
Among the signatories of the letter were Germany-based Boerse Stuttgart Group, US-based Nasdaq and financial technology associations of many European countries. These companies and institutions; It advocates that the blockchain (distributed ledger technology – DLT) pilot regime be updated more quickly and flexibly, separating it from the broad financial law package currently being discussed in the EU.
According to information provided by Bloomberg, companies think that it is important to keep EU legislation up to date in a period when the digital asset market is developing rapidly. Within the scope of the pilot regime, companies can conduct tests so that assets such as shares and bonds can be tokenized and traded on the blockchain.
However, the regulation in question is among the 18-article comprehensive finance laws currently in the EU legislative processes, and according to industry representatives, this process may take years.
Changes demanded by the industry
Among the demands in the joint letter, increasing the types of assets allowed in blockchain-based transactions stands out. It is also proposed to increase the transaction limit to 150 billion euros ($176 billion) and to remove the validity periods on licenses. Industry representatives are of the opinion that realizing these demands will enable the formation of real and scalable markets instead of small-scale pilots.
“Quick and independent updates to the rules could give companies the opportunity to build sustainable markets rather than just pilot projects.”
Following these changes proposed by the companies, the digital finance environment in Europe is expected to gain a more innovative and competitive structure.
Parallel developments in the USA
This call from Europe took place at a time when similar regulatory efforts were ongoing in the USA. Regulations such as the Genius Act, which is being considered by the Parliament in the USA and aims to integrate cryptocurrencies into the mainstream financial system, attract attention in the sector.
The EU Commission, on the other hand, states that evaluating all financial legislation together is compatible with the goals of increasing investments and bringing savings into the economy. While it is signaled that the current approach will be preserved, the sector continues to argue that flexibility in regulations is essential.
