For this purpose the regulator proposes to set restrictions for investment funds, cryptocurrency exchanges and other organizations.
This will reduce risks to financial stability in the event of turmoil in the cryptocurrency industry.
In its report, the ESRB also proposes establishing mandatory periodic reporting requirements for all companies dealing with digital assets.
Creating new regulators for large enterprises in the cryptocurrency industry is also important.
“Systemic risks can arise quickly and suddenly.
If the trend of rapid growth of the industry observed in recent years will continue, crypto-assets may pose risks to the financial stability of the Eurozone states,” the document stresses.
The agency’s analysts also suggest increasing the amount of collateral when dealing with decentralized finance products, as well as for securing stabelcoins.
According to the drafters of the document, it is necessary to limit the company’s ability to sell tokens to its users, because it can be a way of margin trading.
It is worth noting that the ESRB recommendations have no legal force, but the authorities of the Eurozone countries may well take them into account when developing regulations for the crypto industry.
It will be recalled that recently the European Council unanimously supported the bill on regulation of cryptocurrencies (MiCA) and amendments to several rules and directives regarding the new legislation.