Eurosystem, the Eurozone’s monetary authority, introduced new guidelines for overseeing electronic payment, which includes crypto asset services. This new set of rules is intended to complement the EU’s upcoming regulations on cryptocurrencies and stablecoins.
ECB aims to secure and efficiently make digital payments through improved oversight
After public consultations, the Governing Board of the European Central Bank approved a new supervision framework for electronic payment. This document was published by Eurosystem. It consists of the ECB as well as the national central banks from the EU members that adopted the Euro, the European currency.
According to an announcement by the ECB, the single framework replaces other regulations within the Eurosystem’s existing oversight regime for payment instruments and complements its oversight mechanisms for payment systems. The bank noted that the framework has been designed to “make the current and future payments ecosystem safer and more efficient” as part of efforts to promote smooth payments on the Old Continent.
The Eurosystem’s “oversight framework for electronic payment instruments, schemes and arrangements,” referred to as “Pisa,” will be employed to oversee entities enabling the use of payment cards, credit transfers, direct debits, e-money transfers, and electronic wallets. This framework will also apply to services that are linked to crypto assets.
This category covers businesses that accept cryptocurrencies through merchants using card payments. It also includes digital wallet providers which allow users to send, get, and pay for crypto assets with their products. Fabio Panetta (ECB Executive Board Member) stated that the Pisa framework would also include digital payment tokens, such as stablecoins. He said:
Innovation and technological changes are driving rapid change in the retail payment ecosystem. In order to ensure that digital payment solutions are managed effectively, it is necessary for the government to adopt a forward-looking strategy.
European Central Bank calls for a rapid increase in international oversight of digital payment. “Internationally coordinated action will also have to be stepped up to cope with the challenges posed by global digital payment solutions and stablecoins,” the bank’s high-ranking representative insisted.
Companies must comply with the new Oversight Rules within a year
Eurosystem currently supervises companies. They are expected to conform with recently adopted requirements by Nov. 15, 20,22. The grace period for entities subject to surveillance will last one year from the date they receive notification about their new obligations. Every provider of traditional or crypto services will need to complete self-assessments.
The Eurosystem’s new oversight framework replaces a number of other documents issued previously by the ECB. This list contains the Harmonized oversight and standards for payments instruments (PI standards), Electronic money system security goals (Emso), Oversight Framework for card payment scheme, Credit transfer Schemes Oversight Framework and Direct Debit Schemes Oversight Framework.
In order to implement Pisa, the Eurosystem will cooperate with other authorities. It was approved in advance of any future regulations regarding cryptocurrencies and related activities in the EU, including the Markets in Crypto-Assets proposal (Mica). The move also comes as the ECB progresses towards issuing its own digital euro currency, after launching the project’s investigation phase earlier this year.
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