EU Watchdog Allocates One Million Euro To Monitor FinTech And Crypto Trading Activities

The European financial watchdog ESMA has allocated over a million euros towards a market study of crypto trading and fintech. The European Securities and Markets Authority (ESMA), which regulates and legislates securities in the European market, has allocated 1.1 million Euros towards the monitoring of fintech and digital assets, as detailed in the 2019 annual work program report released by the body. ESMA’s highest priority is to ensure investment protection and promote stability of the financial markets.

The EU watchdog is concentrated on checking monetary activities and retail investor trends when it comes to digital asset markets and fintech industry, to recognize dangers and challenges in an appropriate manner and organize supervisory efforts across the region, promoting best practices and suggesting actions if required.

As the crypto trading industry is still largely unregulated, however, in 2017 ESMA had cautioned investors about prospective hazards in buying digital currencies such as Bitcoin, citing dangerous price volatility and clear signs of a price fizz as a principal reason for concerns. According to Bitcoin Volatility Index, Bitcoin volatility dropped dramatically to the lowest level since May 2017. ESMA has budgeted approximately €48 million for monitoring Europe’s financial markets during 2019, as stated in FXStreet.

Currently, ESMA is planning to hire 6 full-time staff members to take a “coordinated approach to the regulation and supervisory treatment” of emerging financial instruments. For the financial year (FY) 2019, ESMA has reportedly budgeted €10 million for the operational costs (including human resources) associated with managing financial data. There are 18 different, or separate, databases and other IT systems operated by ESMA that require regular maintenance.

Ric Edelman, a top-ranked American financial advisor at Edelman’s, had invested in its company’s operations. As per Cryptoglobe, he revealed that most monetary advisors were still unacquainted with digital currencies and his aim is to raise the bar of awareness of crypto trading in education so that advisors can be of greater value to their clients.

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