The EU Financial Market Authority has revealed that it has allocated more than a million euros to track cryptocurrencies and other liquidity activities in 2019.
As stated in its 2019 annual work program - September 26, but released today - European Securities and Markets (ESMA) state its main priorities for the next year and determine its level of staff regarding budget and staff in major areas activities.
The agency explains in its statement that under its economic protection mandate the economic bloc "pays special attention" to financial innovation, including cryptographic assets, adding to the problems and risks associated with these activities.
It also helps in aligning regional regulatory initiatives to market surveillance and promoting best practices, including providing advice or suggesting "relevant actions as needed."
The primary objective of ESMA for the next year, he says, is:
"Establish a coordinated approach to regulation and management in monitoring new or innovative financial activities and providing advice to EU institutions, market participants or consumers."
Break the box
It also plans to establish a framework based on product intervention authorizations granted under the EU Financial Market Instruments Directive (MiFIR).
The latter refers to new measures for the provision of difference contracts (CFDs) and binary options for individual investors.
These include a ban on marketing, distributing or selling binary options to small investors, and restricting marketing, distribution, or sale of CFDs to small investors, including limitation of leverage on open positions, thus preventing the supplier from standard risk warning.
Last January, ESMA asked the public to comment on CFDs for cryptocurrencies, as reported by CoinDesk. The regulator at that time advised that it would consider these products to comply with its MiFIR regulatory framework and to recognize strict limitations on products.
Overall, for its monitoring and data collection plans for cryptographic assets and financial technology adopted by the regulator in 2019, the regulator has a budget of 1,107,360 euros and six full-time employees.