The euro zone monetary authority, the euro system, has introduced a new framework to oversee electronic payments, including services related to crypto assets. The new set of rules will supplement the upcoming EU regulations on cryptocurrencies and stablecoins.

The European Central Bank aims to achieve safe and efficient digital payments through enhanced supervision

After conducting a public consultation on the matter, the European Central Bank (ECB) Management Committee approved a new regulatory framework for electronic payments. The document is issued by the Eurosystem, which is composed of the European Central Bank and the national central banks of the European Union member states that adopt the European common currency euro.

According to the ECB’s announcement, the single framework replaces other provisions in the euro system’s existing payment instrument supervision system and supplements its payment system supervision mechanism. The bank pointed out that the framework aims to “make the current and future payment ecosystem safer and more efficient” as part of its efforts to promote smooth payments in the Old World.

The Eurosystem’s “electronic payment tools, plans and arrangements supervision framework”, called “Pisa”, will be used to supervise entities that support the use of payment cards, credit card transfers, direct debits, electronic money transfers, and electronic wallets. The framework will also apply to services related to encrypted assets.

The latter category includes businesses that promote merchant acceptance of cryptocurrency through card payments and digital wallet providers that allow users to send, receive, or pay for crypto assets through their products. Fabio PanettaMembers of the European Central Bank’s Executive Committee revealed that Pizza frame It will also cover digital payment tokens, such as stablecoins. He commented:

Due to innovation and technological changes, the retail payment ecosystem is developing rapidly. This requires a forward-looking approach to oversee digital payment solutions.

The European Central Bank urges rapid progress in the global supervision of digital payments. “It is also necessary to strengthen international coordinated actions to meet the challenges posed by global digital payment solutions and stablecoins,” the bank’s senior representative insisted.

Companies must comply with the new regulatory rules within one year

Companies currently regulated by the euro system are expected to comply with the recently passed requirements by November 15, 2022. Other entities currently under supervision will have a one-year grace period after receiving notification of renewal of their obligations. All traditional and crypto service providers must submit self-assessments and keep in touch with regulators.

The new supervisory framework of the euro system replaced some other documents previously issued by the European Central Bank. The list includes coordinated supervision methods and standards for payment instruments (PI standards), electronic money system security objectives (Emsso), card payment plan supervision framework, credit transfer plan supervision framework and direct debit plan supervision framework.

The euro system intends to cooperate with other authorities to implement Pisa. This framework has been adopted before the upcoming regulations regarding the state of cryptocurrencies and related activities within the EU (such as the crypto asset market).Mica) Proposal.This move is also in the direction of the European Central Bank to issue its own Digital euro Currency, after emission The investigation phase of the project was earlier this year.

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