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The crypto-asset sector, while still relatively new, has already changed the world of payments and investment forever. The fast-changing, mobile nature of the sector and its growing market prominence poses challenges, however, for tax authorities, which are not always able to track the capital gains made from trading crypto-assets. On 8 December 2022, the European Commission proposed to set up a reporting framework which would require crypto-asset service providers to report transactions made by ...

In this in-depth analysis, we summarise and explain the directions that the ECB has in mind for the digital euro, based on the ECB’s progress reports and statements. This substantially revised analysis reflects now also the fourth progress report and selected elements of the Commission’s proposals of 28 June 2023. We also highlight further questions that may deserve the legislators’ attention when they discuss the recent European Commission proposal. The analysis also entails a summary of the external ...

This study assesses the ECB’s first three progress reports on the digital euro from a legal perspective. It looks into what key design choices proposed by the ECB reveal in terms of the legal qualification of the digital euro and discusses legal aspects of the infrastructure supporting it.

This study analyses the need to adopt further EU financial regulation on decentralized finance after the implementation of the Markets in Crypto Asset Regulation and the revision of the Transfer of Funds Regulation, with a special view on crypto lending, crypto staking, crypto custody, the use of non-formal information, NFTs and sustainability. This document was provided by the Policy Department for Economic, Scientific and Quality of Life Policies at the request of the Committee on Economic and ...

The study argues in favour of the introduction of a digital euro because of its benefits for the public’s store of value and cashless payment options. It questions the assumption that caps on digital euro holdings would be necessary in the interest of financial stability and favours an approach that allows everyone unlimited access to digital euros.

The two progress reports provide an insightful overview over some of the thinking underlying the digital euro project. The reports remain vague in some respects, which is not surprising given the early stage of the project.

This study assesses the first two ECB progress reports on the digital euro. It is socially desirable to have a digital euro. However, the envisaged design of the digital euro makes the use case for a digital euro from consumers’ point of view questionable, in part because it will offer less convenience than other, commercially provided, digital means of payment. This study lays out some desirable design features of a digital euro that can foster broad adoption.

This paper assesses the state of preparation for the possible launch of a digital euro. It focuses on the main relevant aspects: market impact, implications for banks, design and technical issues, monetary policy, financial stability, the role of fintech and Big Techs, international dimensions, privacy, and financial inclusion. On each, brief recommendations for the ECON Committee’s work are offered. The concluding judgment is broadly positive on the preparatory work but doubtful on the wisdom of ...

Crypto-assets defy existing regulations, calling for legislation to address the various risks they entail. As part of the 2021 legislative package aimed at strengthening the EU's anti-money-laundering and countering the financing of terrorism rules, the Commission proposed to revise the regulation on information accompanying transfers of funds to cover crypto-assets. During the April plenary session, the Parliament is scheduled to vote on the trilogue agreement found with the Council on the proposed ...

The European Parliament is due to vote in April on adopting a regulation on markets in crypto-assets (MiCA), following a provisional agreement on the proposal in trilogue negotiations. The regulation would establish harmonised rules for crypto-assets at EU level, thereby providing legal certainty for those crypto-assets not covered by existing EU legislation. By enhancing consumer and investor protection and financial stability, the regulation seeks to promote innovation and the use of crypto-assets ...