European Central Bank is one of the biggest financial regulatory institutions in the world. They have recently emphasized getting most of the digital assets licensed. The bank laid down the criteria that will be taken into consideration before granting the license to a particular digital asset. The market experts stated that this was a welcome move in order to stabilize the turbulent crypto market.
Unfortunately, it seems that the honeymoon period for all the crypto companies has come to a screeching halt. The last few months have been disastrous for the crypto community. Prices of every company have gone down significantly. Even the giants of the crypto market like Bitcoin and Ethereum have witnessed their shares go down considerably. Under such a volatile condition, Coinflex came with a dreadful announcement for its employees.
The company stated that they would be cutting down significantly on their staff in order to cope up with the heavy loss that they have incurred during the past months. Thus, the experts agreed on the fact that regulatory bodies needed to be strict to get the market back to normal. The supervision division of the European Central Bank officially spoke about the guidelines. Let us learn more about the story in detail below.
European Central Bank Initiates Digital Licensing
The European Central Bank’s spokesperson stated recently that the bank was planning to control the crypto-related assets quite aggressively. The bank will depend on the business models of different firms, internal governance, and more to assess a company.
The European Central Bank also spoke about collecting information from the Anti-Money Laundering officials to evaluate the risks involved.