The European financial regulator has allocated €1 million for oversight of the cryptocurrency market

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The European financial regulator has allocated €1 million for oversight of the cryptocurrency market

The European securities and markets authority (ESMA) – the financial regulator of the European Union’s office in Paris. Officials ESMA has allocated one million euros for the study and monitoring of the stock market.

The European securities and markets appeared in 2011. She replaced another regulatory body, the Committee of European securities regulators, but its function has not changed much: ESMA shall develop rules for the financial markets of the European Union, as well as control of these markets. A serious organization, that is.

The press service of the ESMA announced that the organization has adopted a budget for the next, 2019, which carries an amount of €1.1 million for the implementation of the regulation and supervision of a new area – a cryptocurrency market.

What European officials will spend a million? For market research, calculation of risks associated with investments in digital assets and the preparation of recommendations and proposals for oversight of this area. In addition, ESMA will take measures to implement the EU Directive “O markets in financial instruments” (MiFID).

While analysts try to predict what policies will carry the ESMA recall that in August 2018, the European securities and markets restricted the ratio (2:1) for the cryptocurrency CFD. This restriction was introduced until the beginning of November 2018 on the condition that it can be extended. What is the meaning of this restriction? This measure, according to officials ESMA will reduce the risks for private investors working with CFD and binary options. So, options are banned and the contracts for difference is limited. What will happen in 2019, even scary to imagine.

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