AM Com NonLegReport · 2020. 7. 20. · AM\1209528EN.docx PE654.084v01-00 ENUnited in diversityEN...

$: AM Com NonLegReport · 2020. 7. 20. · AM\1209528EN.docx PE654.084v01-00 ENUnited in diversityEN European Parliament 2019-2024 Committee on Economic and Monetary Affairs 2020/2034(INL)$
AM\1209528EN.docx PE654.084v01-00

EN United in diversity EN

European Parliament2019-2024

Committee on Economic and Monetary Affairs

2020/2034(INL)

8.7.2020

AMENDMENTS1 - 365Draft reportOndřej Kovařík(PE650.539v01-00)

Digital Finance: emerging risks in crypto-assets - regulatory and supervisory challenges in the area of financial services, institutions and markets(2020/2034(INL))

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AM_Com_NonLegReport

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Amendment 1Eero Heinäluoma, Pedro Marques, Paul Tang

Motion for a resolutionCitation 1 a (new)

Motion for a resolution Amendment

– having regard to Articles 7 and 8 of the Charter of Fundamental Rights of the European Union,

Or. en


Motion for a resolutionCitation 1 b (new)


– having regard to Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data and repealing Directive 95/46/EC (General Data Protection Regulation)1a,_____________________1a OJ L 119, 4.5.2016, p. 1.

Or. en

Amendment 3Eva Kaili

Motion for a resolutionCitation 1 c (new)


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– having regard to Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation)1a,___________________1a OJ L 119, 4.5.2016, p. 1.

Or. en


Motion for a resolutionCitation 1 d (new)


– having regard to Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 2015 on payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and Regulation (EU) No 1093/2010, and repealing Directive 2007/64/EC1a,__________________1a OJ L 337, 23.12.2015, p. 35.

Or. en


Motion for a resolutionCitation 1 e (new)


– having regard to Directive (EU)

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2015/849 of the European Parliament and the Council of 20 May 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, amending Regulation (EU) No 648/2012 of the European Parliament and of the Council, and repealing Directive 2005/60/EC of the European Parliament and of the Council and Commission Directive 2006/70/EC1a,__________________1a OJ L 141, 5.6.2015, p. 73.

Or. en




– having regard to the Communication from the Commission of 19 February 2020 entitled ‘A European Strategy for Data’1a,___________________1a COM(2020)0066.

Or. en

Amendment 7Eero Heinäluoma, Pedro Marques



– having regard to the Commission and High Representative’s Joint

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Communication of 6 April 2016 entitled ‘Joint Framework on countering hybrid threats - a European Union response’1a,______________________1a JOIN(2016) 18 final.

Or. en




– having regard to the White Paper on Artificial Intelligence - A European approach to excellence and trust1a,_____________________1a COM(2020)0065.

Or. en

Amendment 9Gunnar Beck, Maximilian Krah, Jörg Meuthen



– having regard to the answer given by Vice-President Dombrovskis on behalf of the Commission E-001130/2017 of 10 April 2017,

Or. en


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– having regard to the Final report of the Directorate-General for Financial Stability, Financial Services and Capital Markets Union (European Commission) ‘Governance for a DLT/Blockchain enabled European electronic Access Point (EEAP)’ of October 2019,

Or. en


Motion for a resolutionCitation 2 f (new)


– having regard to the study of the European Commission on the application of the Interchange Fee Regulation,

Or. en


Motion for a resolutionCitation 2 g (new)


– having regard to the Final Report of the High Level Forum of the European Commission on the Capital Markets Union: A New Vision for Europe’s Capital Markets of June 2020,

Or. en

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Motion for a resolutionCitation 2 h (new)


– having regard to the public consultation of the Commission on ‘Review of the regulatory framework for investment firms and market operators’,

Or. en




– having regard to the European Parliament resolution of 16 February 2017 with recommendations to the Commission on Civil Law Rules on Robotics (2015/2103(INL)),

Or. en




– having regard to the European Parliament resolution of 17 May 2017 on FinTech: the influence of technology on the future of the financial sector

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(2016/2243(INI)),

Or. en




– having regard to the European Parliament resolution of 3 October 2018 on distributed ledger technologies and blockchains: building trust with disintermediation (2017/2772(RSP)),

Or. en




– having regard to the European Parliament legislative resolution of 27 March 2019 on the proposal for a regulation of the European Parliament and of the Council on European Crowdfunding Service Providers (ECSP) for Business (COM(2018)0113 – C8-0103/2018 – 2018/0048(COD)),

Or. en

Amendment 18Stasys Jakeliūnason behalf of the Greens/EFA Group

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– having regard to the study requested by the European Parliament's Committee on Economic and Monetary Affairs ‘Crypto-assets: Key developments, regulatory concerns and responses’ of April 2020,

Or. en


Motion for a resolutionCitation 3 f (new)


– having regard to the study requested by the European Parliament's Committee on Internal Market and Consumer Protection ‘Consumer Protection Aspects of Financial Services’ of February 2014,

Or. en

Amendment 20Markus Ferber



– having regard to the European Supervisory Authorities joint report ‘FinTech: Regulatory sandboxes and innovation hubs’ of 7 January 20191a,_________________

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1a JC 2018 74.

Or. en




– having regard to the European Supervisory Authorities joint report ‘FinTech: Regulatory sandboxes and innovation hubs’ of 7 January 20191a,__________________________1a JC 2018 74.

Or. en


Motion for a resolutionCitation 12


– having regard to Yves Mersch’s keynote speech ‘Lending and payment systems in upheaval: the FinTech challenge’ of 26 February 2019, at the 3rd Annual Conference on FinTech and Digital Innovation,

deleted

Or. en

Amendment 23Agnès Evren

Motion for a resolution

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Citation 16 a (new)


– having regard to the consultative document by the Financial Stability Board 'Addressing the regulatory, supervisory and oversight challenges raised by “global stablecoin” arrangements' of 14 April 2020,

Or. en




– having regard to the Financial Action Task Force’s ‘Guidance for a Risk-Based Approach to Virtual Assets and Virtual Asset Service Providers’ of June 2019,

Or. en




– having regard to the Financial Action Task Force’s Recommendations as updated in June 2019, in particular Recommendation 16 on wire transfers,

Or. en

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Amendment 26José Gusmão

Motion for a resolutionRecital A


A. whereas digital finance is a consistently evolving area of the financial sector which deserves ongoing monitoring and consideration both on an industry and regulatory level;

A. whereas digital finance is a consistently evolving and booming area of the financial sector which needs ongoing monitoring and consideration both on an industry and regulatory level;

Or. en

Amendment 27Derk Jan Eppink

Motion for a resolutionRecital A a (new)


Aa. whereas the Union's internal market is characterised by open competition, a regulatory framework, reliance on international standards and supervisory cooperation; whereas the Union’s digital finance strategy should therefore be based on the same principles;

Or. en




Aa. whereas the financial sector is under extreme pressure by the ultra-low

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interest rate environment dictated by the ECB to cut costs and find new and innovative ways to work more efficiently, including through digital finance;

Or. en




Aa. whereas there is a general trade-off in regulating FinTechs between encouraging innovation and ensuring a high degree of investor protection and financial stability;

Or. en




Aa. whereas one key lesson from the financial crisis is that regulation must keep pace with financial innovation, otherwise new systemic risks may emerge;

Or. en


Motion for a resolutionRecital B

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B. whereas the term ‘crypto-assets’ is used to refer to a wide variety of digital assets, including but not limited to virtual currencies and tokens;

B. whereas the term ‘crypto-assets’ is used to refer to a wide variety of digital assets, including but not limited to virtual currencies and tokens, which have a range of uses and purposes and can be issued and traded in a number of ways;

Or. fr

Amendment 32Stefan Berger

Motion for a resolutionRecital B


B. whereas the term ‘crypto-assets’ is used to refer to a wide variety of digital assets, including but not limited to virtual currencies and tokens;

B. whereas the term ‘crypto-assets’ is used to refer to a wide variety of digital assets, including but not limited to virtual currencies and tokens but sometimes excluding certain forms of stablecoins or certain tokens such as security tokens;

Or. en


Motion for a resolutionRecital B a (new)


Ba. whereas the Financial Action Task Force (FATF) adopted a broad definition of virtual currency and recommended incorporating within the scope of AML/CFT obligations any natural or legal person who conducts activities including exchange between crypto-

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assets, transfer of crypto-assets and participation in and provision of financial services related to initial coin offerings;

Or. en


Motion for a resolutionRecital B a (new)


Ba. whereas the ultra-accommodative policies of the ECB cast doubt on a sustainable future for the common currency, which stresses the importance of cryptocurrencies and crypto-assets as reliable stores of value and as a hedge against monetary insecurity;

Or. en


Motion for a resolutionRecital C


C. whereas the two most common components of crypto-assets adopted are (i) the private nature of the asset, and (ii) the use of cryptography and distributed ledger technology (DLT) or similar technology to underpin exchanges of the asset;

C. whereas the two most common components of crypto-assets adopted are (i) the private nature of the entitlement regarding the underlying asset, claim or right, and (ii) the use of cryptography and distributed ledger technology (DLT) or similar technology to underpin exchanges of the asset;

Or. en

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Motion for a resolutionRecital C


C. whereas the two most common components of crypto-assets adopted are (i) the private nature of the asset, and (ii) the use of cryptography and distributed ledger technology (DLT) or similar technology to underpin exchanges of the asset;

C. whereas the two most common components of crypto-assets adopted are (i) the private nature of the asset, and (ii) the use of cryptography and distributed ledger technology (DLT) or similar technology to underpin exchanges of the asset and its inherent or perceived value;

Or. en

Amendment 37Eero Heinäluoma, Pedro Marques, Jonás Fernández

Motion for a resolutionRecital C a (new)


Ca. whereas, at present, crypto-assets are neither issued nor guaranteed by a central bank or public authority in the Union, and can have a variety of uses, including as a means of exchange, for investment purposes, and in order to access a good or service;

Or. en

Amendment 38Eero Heinäluoma, Pedro Marques, Jonás Fernández, Paul Tang

Motion for a resolutionRecital C b (new)


Cb. whereas the BIS Committee

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expressed strong reservations about the dissemination of crypto-assets, pointing out that they are not reliably able to provide the standard functions of money and are unsafe to rely on as a medium of exchange or store of value1a;_________________1a https://www.bis.org/publ/bcbs_nl21.htm

Or. en

Amendment 39Eero Heinäluoma, Pedro Marques, Jonás Fernández, Aurore Lalucq

Motion for a resolutionRecital D


D. whereas stablecoins exhibit similar features to crypto-assets and do not take the form of any specific currency, but rely on a set of tools which aim to minimise fluctuations of their price as denominated in a currency;

D. whereas stablecoins exhibit similar features to crypto-assets and do not take the form of any specific currency, but rely on a set of tools which aim to minimise fluctuations of their price as denominated in a currency; whereas some crypto-assets, including stablecoins and their associated technologies, have the potential to increase efficiencies, competition and transparency and to bring substantial opportunities and benefits to society, since some of them could lead to cheaper and faster payments and offer new funding sources for SMEs;

Or. en


Motion for a resolutionRecital D


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D. whereas stablecoins exhibit similar features to crypto-assets and do not take the form of any specific currency, but rely on a set of tools which aim to minimise fluctuations of their price as denominated in a currency;

D. whereas stablecoins exhibit similar features to crypto-assets and do not take the form of any specific currency, but rely on a set of tools which aim to minimise fluctuations of their price as denominated in a currency; whereas the set of tools aiming to minimise price fluctuations has not been tested in situations when significant numbers of transactions are being carried out with stablecoins;

Or. en


Motion for a resolutionRecital D a (new)


Da. whereas public debate about privately launched stablecoins has highlighted certain shortcomings of the Union's payments landscape;

Or. en

Amendment 42Ondřej Kovařík, Martin Hlaváček, Engin Eroglu, Caroline Nagtegaal, Stéphanie Yon-Courtin, Luis Garicano, Olivier Chastel, Gilles Boyer, Billy Kelleher

Motion for a resolutionRecital D a (new)


Da. whereas stablecoins have the potential to become a widely used means of payment;

Or. en

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Motion for a resolutionRecital E


E. whereas a Central Bank Digital Currency (CBDC) is based on the concept of a stable asset, is sovereign in nature and therefore distinct to crypto-assets;

E. whereas a Central Bank Digital Currency (CBDC) misses the point of decentralised and encrypted safe stores of value, unless its issuance algorithm is completely separated from central banking policy, and it is untraceable and anonymous;

Or. en

Amendment 44Ondřej Kovařík, Caroline Nagtegaal, Martin Hlaváček, Engin Eroglu, Stéphanie Yon-Courtin, Luis Garicano, Olivier Chastel, Gilles Boyer, Billy Kelleher

Motion for a resolutionRecital E a (new)


Ea. whereas the People’s Bank of China is trialling a central bank digital currency (the DCEP); highlights that the potential global use of the DCEP could have implications for international trade and consumer protection;

Or. en

Amendment 45Gunnar Beck, Maximilian Krah, Jörg Meuthen, Hélène Laporte

Motion for a resolutionRecital F


F. whereas possible initiatives for F. whereas possible initiatives for

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implementing CBDCs are under consideration, both within the Union and on a global level;

implementing CBDCs are under consideration, both within the Union and at global level; underlines however that the development of CBDCs does not fall within the mandate of the ECB, which is to maintain price stability;

Or. en

Amendment 46Jonás Fernández

Motion for a resolutionRecital F a (new)


Fa. whereas the ECB has euro cash as the sole legal tender;

Or. en


Motion for a resolutionRecital G


G. whereas digital finance has a strong cross-border element, which goes beyond the Union level and therefore international cooperation in this field is essential;

G. whereas digital finance has a strong cross-border element, which goes beyond the Union level and therefore international cooperation as well as an efficient and effective Union supervision in this field is essential;

Or. en


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Motion for a resolutionRecital G


G. whereas digital finance has a strong cross-border element, which goes beyond the Union level and therefore international cooperation in this field is essential;

G. whereas digital finance has a strong cross-border element, which goes beyond the Union level and therefore international cooperation and standard-setting in this field is essential;

Or. en

Amendment 49Isabel Benjumea Benjumea

Motion for a resolutionRecital G a (new)


Ga. whereas digital finance has a strong capital flows element which attracts cross-border investments; therefore digital finance can contribute to Union competitiveness on global markets;

Or. en

Amendment 50Stasys Jakeliūnason behalf of the Verts/ALE Group

Motion for a resolutionRecital H


H. whereas, according to market data, at the beginning of 2020, over 5,100 crypto-assets exist globally, with a total market capitalisation exceeding USD 250 billion2 ;

H. whereas, according to market data1a, as of June 2020, over 5,600 crypto-assets exist globally, with a total market capitalisation exceeding USD 260 billion,2

65% of which is made up of Bitcoin alone;

_________________ _________________

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1a https://coinmarketcap.com 2 https://www.europarl.europa.eu/RegData/etudes/STUD/2020/648779/IPOL_STU(2020)648779_EN.pdf

2

https://www.europarl.europa.eu/RegData/etudes/STUD/2020/648779/IPOL_STU(2020)648779_EN.pdf

Or. en


Motion for a resolutionRecital H a (new)


Ha. whereas, according to market data, stablecoins have reached a total market capitalisation of EUR 10 billion in June 2020 from 1.5 billion in January 2018 and, despite their still limited reach compared to other cryptocurrencies, have the potential to rapidly reach a global scale and a wide mass user base, especially if adopted by big tech companies exploiting their networks;

Or. en


Motion for a resolutionRecital H b (new)


Hb. whereas, according to empirical research1a, approximately one-quarter of all users (26%) and close to half of all transactions (46%) in Bitcoin are associated with illegal activity, for a value of around USD76 billion of per year,

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which is close to the scale of the US and Union markets for illegal drugs; whereas crypto-assets, by providing electronic technologies which require very complex identification and verification processes, have enabled the growth of online ‘darknet’ marketplaces, in which illegal goods and services, including weapons, drugs and counterfeit documents, are traded and can play a major role in money laundering, tax evasion and tax fraud, and other illicit activities; whereas the general manager of BIS, Agustín Carstens, defined Bitcoin as 'a combination of a bubble, a Ponzi scheme and an environmental disaster';_________________1a

https://www.europarl.europa.eu/RegData/etudes/STUD/2020/648779/IPOL_STU(2020)648779_EN.pdf

Or. en


Motion for a resolutionRecital I


I. whereas experts of the European Central Bank (ECB) noted in their publication of 20193, that even though crypto-assets are highly speculative, they do not represent an immediate threat to financial stability;

deleted

_________________3

https://www.ecb.europa.eu/pub/economic-bulletin/articles/2019/html/ecb.ebart201905_03~c83aeaa44c.en.html#toc4

Or. en

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I. whereas experts of the European Central Bank (ECB) noted in their publication of 20193, that even though crypto-assets are highly speculative, they do not represent an immediate threat to financial stability;

I. whereas experts of the European Central Bank (ECB) noted in their publication of 20193, that even though crypto-assets are highly speculative, they do not represent an immediate threat to financial stability; whereas the International Monetary Fund (IMF), in its 2018 global financial stability report, and the Financial Stability Board (FSB), in its July 2018 report, reached the same conclusions, although in the FSB’s opinion the situation should still be monitored, given how quickly changes occur on these markets;

_________________ _________________3 https://www.ecb.europa.eu/pub/economic-bulletin/articles/2019/html/ecb.ebart201905_03~c83aeaa44c.en.html#toc4

3 https://www.ecb.europa.eu/pub/economic-bulletin/articles/2019/html/ecb.ebart201905_03~c83aeaa44c.en.html#toc4

Or. fr




I. whereas experts of the European Central Bank (ECB) noted in their publication of 20193 , that even though crypto-assets are highly speculative, they do not represent an immediate threat to

I. whereas experts of the European Central Bank (ECB) noted in their publication of 20193 , that even though crypto-assets are highly speculative, they do not represent an immediate threat to

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financial stability; financial stability due to the current limited size of crypto-asset networks, whereas such state of play is subject to change in case of large scale adoption;

_________________ _________________3 https://www.ecb.europa.eu/pub/economic-bulletin/articles/2019/html/ecb.ebart201905_03~c83aeaa44c.en.html#toc4

3 https://www.ecb.europa.eu/pub/economic-bulletin/articles/2019/html/ecb.ebart201905_03~c83aeaa44c.en.html#toc4

Or. en




I. whereas experts of the European Central Bank (ECB) noted in their publication of 20193 , that even though crypto-assets are highly speculative, they do not represent an immediate threat to financial stability;

I. whereas experts of the European Central Bank (ECB) noted in their publication of 20193, that even though crypto-assets are highly speculative, they do not represent an immediate threat to financial stability; whereas that view has been shared by both ESMA[1][5]3a and the EBA[2][6]3b;

_________________ _________________3

https://www.ecb.europa.eu/pub/economic-bulletin/articles/2019/html/ecb.ebart201905_03~c83aeaa44c.en.html#toc4

3 https://www.ecb.europa.eu/pub/economic-bulletin/articles/2019/html/ecb.ebart201905_03~c83aeaa44c.en.html#toc43a ESMA Advice - Initial Coin Offerings and Crypto-Assets (https://www.esma.europa.eu/sites/default/files/library/esma50-157-1391_crypto_advice.pdf)3b EBA Report with advice for the European Commission on crypto-assets (https://eba.europa.eu/sites/default/documents/files/documents/10180/2545547/67493daa-85a8-4429-aa91-e9a5ed880684/EBA%20Report%20on%2

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0crypto%20assets.pdf)

Or. en


Motion for a resolutionRecital I a (new)


Ia. whereas, as pointed out in the EBA report, financial institutions are currently engaging in relatively limited crypto-assets related activities, but their interest is likely to grow particularly in the context of the increasing use of DLT-based solutions; whereas such activities include holding or gaining exposure to crypto-assets, underwriting ICOs, or offering services in relation to crypto-assets such as providing custody wallet or exchanges; whereas the current prudential rules are not well suited to capturing the high volatility and high risks of crypto-assets;

Or. en




Ia. whereas recent research suggests that crypto-assets are mainly used as a speculative investment, rather than as a means of payment for goods or services offered by a legal merchant; whereas the ESAs have highlighted that crypto-assets

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which do not qualify as financial instruments within the coverage of Union financial regulation pose specific risks, namely in terms of investor and consumer protection as well as to market integrity; whereas specific risks highlighted include fraud, cyber-attacks, money laundering, operational resilience and market manipulation;

Or. en




Ia. whereas the shadow banking sector, which includes investment funds, money market funds, FinTechs and other financial intermediaries, has been growing in the Union and poses significant risks to the stability of the financial system, given its high degree of interconnectedness with insurance companies and pension funds, its procyclical nature and its lack of regulation;

Or. en

Amendment 60Gunnar Beck, Maximilian Krah, Jörg Meuthen, Francesca Donato, Valentino Grant, Antonio Maria Rinaldi



Ia. whereas in its report on decentralised transaction networks (DLT),

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published in January 2017, ESMA concluded that it was too early for regulatory measures because the technology in the financial markets was still in its early stages;

Or. en




Ia. whereas crypto-assets may increase the risks of money laundering, fraudulent practices, tax evasion and external attacks ;

Or. fr




Ia. whereas the adoption of new technologies can make a significant contribution to allowing financial services companies to meet their ongoing supervisory and compliance obligations;

Or. en



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Recital I b (new)


Ib. whereas within the range of crypto-assets which qualify as financial instruments under Union law, the classification as such relies on the national competent authorities applying the national implementation of Union law, which creates discrepancies in the supervisory and regulatory approach, harming consistency and a level playing field in the Union; whereas such classification and integration within the Union legislative framework is not without difficulties, since different crypto-assets present different features, which may change over time;

Or. en


Motion for a resolutionRecital I b (new)


Ib. whereas initial coin offerings (ICOs) could provide an alternative source of funding for innovative businesses and start-ups at the early phase of their developments, but they also expose investors to high risks of losses due to their highly speculative nature and vulnerability to frauds; whereas the BIS Annual Economic Report 2018 found that at least 22,5% of ICOs have turned out to be fraudulent Ponzi schemes;

Or. en

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Motion for a resolutionRecital I b (new)


Ib. whereas ESMA expects, according to its report on decentralised transaction networks (DLT), that the new technology will bring various advantages, but also challenges in terms of control, data protection, cross-system interoperability, the application of common standards and access to central bank balances;

Or. en


Motion for a resolutionRecital I c (new)


Ic. whereas crypto-assets have the potential to reduce transactions costs in a safe manner in an increasingly digitally surveyed world if subject to a stringent, fit for purpose and risk-based regulatory regime;

Or. en


Motion for a resolutionRecital J

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J. whereas digital finance can contribute in a number of ways to tackling the economic effects of the COVID-19 outbreak as regards consequences for citizens, SMEs and other businesses and financial services;

deleted

Or. en


Motion for a resolutionRecital J


J. whereas digital finance can contribute in a number of ways to tackling the economic effects of the COVID-19 outbreak as regards consequences for citizens, SMEs and other businesses and financial services;

deleted

Or. en

Amendment 69Eero Heinäluoma, Pedro Marques, Jonás Fernández, Paul Tang, Aurore Lalucq

Motion for a resolutionRecital J a (new)


Ja. whereas large technology firms and global digital platforms are increasingly offering financial services; where those large operators in the digital sector benefit from competitive advantages such as economies of scale, vast cross-border user networks, easy access to financing and the ability to harvest large swaths of data provided by

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users through data processing technologies such as ‘big data analytics’, which generate tremendous added value in a variety of ways; whereas the presence of ‘Big Tech’ firms in the FinTech markets has the potential to harm fair competition and innovation;

Or. en




Ja. whereas the Wirecard scandal highlights the high risks for consumer investor protection and financial fraud posed by using sandboxes and by light oversight and regulation in order to foster innovation in the area of FinTech;

Or. en

Amendment 71Jessica Polfjärd



Ja. whereas the COVID-19 outbreak has, to a varying extent across Member States, demonstrated the potential that digital finance offers to both consumers and the economy;

Or. en

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Ja. whereas the share of non-cash-based payments has increased significantly over the past years;

Or. en


Motion for a resolutionRecital J b (new)


Jb. whereas an improved framework for cashless transactions is not intended to undermine cash as a means of payment;

Or. en


Motion for a resolutionRecital K a (new)


Ka. whereas the application of new technologies in the financial sector may create new risks that need to be regulated and monitored in order to safeguard financial stability, the integrity of the internal market and consumer protection;

Or. fr

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Motion for a resolutionRecital L


L. whereas the increased use of artificial intelligence in financial services will lead to a need for stronger operational resilience and the appropriate corresponding supervision;

L. whereas the increased use of artificial intelligence in financial services will lead to a need for stronger operational resilience, the appropriate corresponding supervision and consumers’ data protection;

Or. en


Motion for a resolutionRecital M


M. whereas operational problems, particularly ICT and security risks, can generate systemic risks for the financial sector;

M. whereas operational problems, particularly ICT and security risks, can generate systemic risks for the financial sector as pointed out by the European Systemic Risk Board1a;

_________________1a

https://www.esrb.europa.eu/news/pr/date/2020/html/esrb.pr200107~29129d5701.en.html

Or. en



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Recital M



M. whereas new operational problems, particularly ICT and security risks, can generate systemic risks for the financial sector; such new risks to be addressed by appropriate regulation;

Or. en


Motion for a resolutionRecital M



M. whereas operational problems, particularly ICT and security risks, especially hacking by foreign powers, can generate systemic risks for the financial sector;

Or. en


Motion for a resolutionRecital O


O. whereas the ICT and security risks faced by the financial sector, and its level of integration at EU level, warrant specific and more advanced actions that build on but go beyond the NIS Directive;

deleted

Or. en

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Motion for a resolutionRecital P


P. whereas cyber resilience is an integral part of the work on the operational resilience of financial institutions carried out by authorities on a global level;

P. whereas cyber resilience is an integral part of the work on the operational resilience of financial institutions carried out by authorities on a multilateral level;

Or. en

Amendment 81Luis Garicano, Stéphanie Yon-Courtin, Gilles Boyer

Motion for a resolutionRecital P a (new)


Pa. whereas the Wirecard scandal reveals the shortcomings of a supervisory model primarily based on national supervisory authorities since national authorities are more likely to turn a blind eye to the failings of their own supervisees; whereas the ongoing ESMA investigation on the Wirecard scandal should identify areas where direct supervision at Union level would have prevented this failure; whereas adaptations to the Union supervisory architecture for financial reporting, financial innovation, payments, and related areas including audit and anti-money laundering/countering terrorism financing, are becoming an urgent necessity in light of the Wirecard scandal;

Or. en

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Pa. whereas a functioning, sustainable and resilient Union financial market should have strong allocative efficiency of capital and risk and the widest financial inclusion of citizens within financial services; whereas digital finance promises to improve both the efficient allocation of capital and allow better distribution of financial risk as well as strong potential for the democratisation of the financial markets as it enables wider financial inclusion;

Or. en




Pa. whereas the use of cloud computing services can offer significant advantages regarding operational resilience and efficiency for financial services providers compared to legacy on-site solution, but comes with additional challenges in relation to security of sensitive financial data and processes, business continuity in case of outages and general vulnerability in relation to cyber crimes;

Or. en

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Pa. whereas a level playing field between financial services firms and technology firms is needed to ensure all firms compete on equal footing, following the principle of ‘same risk, same activity, same regulation’;

Or. en




Pa. whereas the Wirecard scandal has shown that supervisory authorities have once more failed to keep track with the level of complexity of the financial sector;

Or. en

Amendment 86Gunnar Beck



Pa. whereas the downfall of Wirecard and the scandal which ensued, show important deficiencies in the supervision of digital financial service providers;

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Or. en


Motion for a resolutionRecital P b (new)


Pb. whereas experience of the improvements in financial technologies over the course of economic history show that the economic benefits of those improvements are mainly captured by financial service providers and do not trickle down to consumers; whereas digital finance allows for more cost efficient financial services;

Or. en




Pb. whereas the introduction of digital financial services should neither lead to regulatory arbitrage, nor to lower customer protection, reduced safety or financial stability risks;

Or. en



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Pb. whereas many large Union financial institutions rely on third-country providers for cloud computing services;

Or. en


Motion for a resolutionRecital P c (new)


Pc. whereas improvements to financial technology have not so far remedied the structural problem of concentration risk in the systemic level intensifying thus the ‘too big to fail’ problem; whereas digital finance has the strong potential to allow market entrance by new, more agile and less systemically risky financial service providers allowing thus wider distribution of risk over the financial markets;

Or. en


Motion for a resolutionRecital P c (new)


Pc. whereas the European Data Protection Board (EDPB) has an important role to play in helping companies understand their GDPR compliance obligations;

Or. en

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Motion for a resolutionRecital P d (new)


Pd. whereas 37 million economically active Union citizens remain un-bankable, or excluded by the mainstream financial services (data of 2016); whereas digital finance can remedy that problem enabling wider democratisation of the financial services and financial inclusion;

Or. en


Motion for a resolutionRecital P e (new)


Pe. whereas a vibrant financial market for the Union moves financial services to a more systematic use of data, data analytics and emerging technological solutions like artificial intelligence, blockchain, IoT, hyper-performance computing; whereas the technological neutrality principle - the non-discrimination of a financial service provider subject to the technology he uses, and the principle of “same regulation for same risk” is instrumental for an innovation friendly regulation, it is of paramount importance to identify technology specific risk and take them into account and prevent market failures, advance consumer and investor protection and safeguard the resilience of the market;

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Or. en


Motion for a resolutionRecital P f (new)


Pf. whereas technological neutrality is a strong starting point it cannot deliver efficient innovation-friendly regulation by itself; whereas the regulator should be also business model neutral and do not discriminate in favour of legacy financial service providers using legacy business and operational models over innovative ones;

Or. en


Motion for a resolutionRecital P g (new)


Pg. whereas the PSD2 is by itself a strong argument in favour of Open Banking allowing the access to data to innovative financial service providers – subject to the consent of the customers regarding their payments, it is of paramount importance in a robust EU digital finance environment to move forward to the extension of this facility to financial services beyond the payments; whereas the transition from Open Banking to Open Finance will allow the development of holistic financial solutions for the consumers and investors;

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Or. en


Motion for a resolutionRecital P h (new)


Ph. whereas open banking and open finance are instrumental for the transparency in the financial sector, allowing thus the accountability of the banks when they charge the consumers transaction fees, allow the consumers to avoid hidden fees and other suboptimal banking practices that derive from oligopolistic and monopolistic pricing behaviours; whereas these pricing behaviours of banks are subject of an ongoing consultation by the Competition Policy Authorities of the EU as indicated by the EU study on the application from the banks of the Regulation No 2015/751 regarding the interchange fees;

Or. en


Motion for a resolutionRecital P i (new)


Pi. whereas cryptocurrencies, and especially stablecoins with strong systemic impact revealed the inefficiencies of the European payments market; whereas digital finance solutions can improve efficiency and help to the creation of a unified European payments system;

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Or. en


Motion for a resolutionRecital P j (new)


Pj. whereas cryptocurrencies do not have usually a known originator and they do not create financial claim to an underlying asset, contrary to the stableblecoins, security tokens and commodity tokens that all have a known originator;

Or. en


Motion for a resolutionRecital P k (new)


Pk. whereas the tokens issued by entrepreneurs in the form of claims to a cash-flow, an equity claim or a future product/service claim, can be classified in alternative ways, their classification in the EU should give regulatory predictability and homogeneity in the European markets; whereas a technologically relevant and functional regulation of the tokens should take into account potential hybrid designs and provide definitions that maximize the consumer and investor protection, increase legal certainty and leverage the strong potential of these instruments in funding risky entrepreneurial projects; whereas the underlying economic function of the

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token is a significant indicator for its classification;

Or. en


Motion for a resolutionRecital P l (new)


Pl. whereas anti-money laundering is a critical danger to be prevented into the digital finance environment; whereas digital finance improves financial inclusion, still a strong regime of KYC and AML should be in place; whereas cryptocurrencies can be used for illegal activities, their regulatory status as means of payment, instead of means of exchange, can improve the monitoring and prevention of financial crime;

Or. en


Motion for a resolutionRecital P m (new)


Pm. whereas the role of custodian electronic wallet providers is equally instrumental in digital finance services; whereas there is no clear framework regarding the custodians in the EU; whereas a clear framework should be designed for the functioning and licensing of crypto-exchanges as well as Crowdfunding platforms listing and promoting tokens; whereas the regulatory

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fragmentation in this space is dangerous in terms of lack of supervision, fraud prevention, and consumer/investor protection and a unified EU regulatory approach is necessary;

Or. en


Motion for a resolutionRecital P m (new)


Pm. whereas current failures of FinTech companies (e.g. Wirecard) indicate the need for a holistic perspective of the risks associated to failures in financial reporting, fraud and solvency procedures;

Or. en


Motion for a resolutionRecital P o (new)


Po. whereas the technological improvements in the digital environment as well as the recent pandemic, indicated inefficiencies in the supervision of financial markets; whereas advanced technologically financial services require also advanced supervisory technologies and skilled personnel both in the ESAs and the national supervisory authorities; whereas there is no EU provision for a European RegTech (regulatory technology) and SupTech (supervisory

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technology);

Or. en


Motion for a resolutionRecital P p (new)


Pp. whereas transaction data protection of the citizens as well as their financial data should be strictly safeguarded by the financial service providers as they are property of the consumers/investors; whereas digital finance entails new data protection risks and FinTech companies just like legacy financial service providers should have the highest standards in protecting their data pools and have in place solid data governance frameworks;

Or. en


Motion for a resolutionRecital P q (new)


Pq. whereas increased connectivity, the Internet of Things and the interaction of humans and machines can create better financial service experiences but also entail new risks regarding the quality of the interaction, the operational risk management and cyber-security challenges;

Or. en

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Motion for a resolutionRecital P r (new)


Pr. whereas financial service providers who employee smart contracts or machine learning instruments can enhance their operational efficiency, however optimality does not always coincide with robustness in the financial markets and significant errors may occur with strong social impacts, for example exclusion of certain social groups from the financial services; whereas algorithmic failures should be immediately addressed when they occur;

Or. en


Motion for a resolutionRecital P s (new)


Ps. whereas the EU should be a global model for financial services; whereas technology transfer mechanisms should be accelerated in the financial innovation strategies with strengthening of sandboxes policy and the development of vibrant innovation hubs;

Or. en


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Motion for a resolutionRecital P t (new)


Pt. whereas a FinTech-specific passporting strategy is critical for an harmonised financial environment for the EU increasing homogeneity, legal certainty, reduce complexity and increase scalability for the European FinTech firms;

Or. en


Motion for a resolutionRecital P u (new)


Pu. whereas the scalability of European FinTech solutions is critical for the competitiveness of the EU vis-à-vis global competitors that already operate in the European markets controlling transactions and transferring transaction data abroad;

Or. en


Motion for a resolutionParagraph 1


1. Welcomes the commitment of the Commission to finalising an Action Plan on FinTech by Q3 of 2020; considers that a

1. Welcomes the commitment of the Commission to finalising an Action Plan on FinTech by Q3 of 2020; considers that a

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Commission proposal on crypto-assets, as well as a cross-sectoral financial services act on operational and cyber resilience, are timely and necessary due to recent developments in the markets; requests that the Commission submit on the basis of Article 114 respective proposal following the recommendations set out in the Annex hereto;

Commission proposal on crypto-assets, could be useful and warranted, and could include rules on cross-sectoral financial services, and on operational and cyber resilience;

Or. en




1. Welcomes the commitment of the Commission to finalising an Action Plan on FinTech by Q3 of 2020; considers that a Commission proposal on crypto-assets, as well as a cross-sectoral financial services act on operational and cyber resilience, are timely and necessary due to recent developments in the markets; requests that the Commission submit on the basis of Article 114 respective proposal following the recommendations set out in the Annex hereto;

1. Welcomes the commitment of the Commission to finalising an Action Plan on FinTech by Q3 of 2020; considers that a Commission proposal on crypto-assets, as well as a cross-sectoral financial services act on operational and cyber resilience, are timely and necessary due to recent developments in the markets, both European and Global; requests that the Commission submit on the basis of Article 114 respective proposal following the recommendations set out in the Annex hereto;

Or. en




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1. Welcomes the commitment of the Commission to finalising an Action Plan on FinTech by Q3 of 2020; considers that a Commission proposal on crypto-assets, as well as a cross-sectoral financial services act on operational and cyber resilience, are timely and necessary due to recent developments in the markets; requests that the Commission submits on the basis of Article 114 respective legislative proposal following the recommendations set out in the Annex hereto;

Or. en

Amendment 113Aurore Lalucq




1. Takes note of the commitment of the Commission to finalising an Action Plan on FinTech by Q3 of 2020; considers that a Commission proposal on crypto-assets, as well as a cross-sectoral financial services act on operational and cyber resilience, are timely and necessary due to recent developments in the markets; requests that the Commission submit on the basis of Article 114 respective proposal following the recommendations set out in the Annex hereto;

Or. fr



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2. Considers that FinTech will be integral to the success of the Capital Markets Union (CMU) and encourages the Commission to consider how to harness the benefits of FinTech in driving forward capital market integration in the Union;

deleted

Or. fr





2. Considers that FinTech which consists of the use of new technologies to enable and enhance activities of the financial sector and thus plays a key role in developing financial activities, will be integral to the success of the Capital Markets Union (CMU) and encourages the Commission to consider how to empower the innovators of FinTech in driving forward capital market integration in the Union; cryptography, DLT and similar technologies could facilitate and efficiency boost for the value chain in financial markets, triggering a rethinking of the role of intermediaries;

Or. en



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2. Considers that FinTech will be integral to the success of the Capital Markets Union (CMU) and encourages the Commission to consider how to harness the benefits of FinTech in driving forward capital market integration in the Union; whilst at the same time addressing at regulatory and supervisory level the specific risks that FinTech, namely crypto-assets, pose;

Or. en





2. Considers that FinTech will be integral to the success of the Capital Markets Union (CMU) for its capacity to improve the offer of financing options for companies and citizens as well as bringing a more attractive investment offer; and encourages the Commission to integrate the benefits of FinTech in the 2020 CMU Action Plan;

Or. en




2. Considers that FinTech will be 2. Considers that FinTech will be

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integral to the success of the Capital Markets Union (CMU) and encourages the Commission to consider how to harness the benefits of FinTech in driving forward capital market integration in the Union;

integral to the success of the Capital Markets Union (CMU), subject to an appropriate regulatory framework and consumer protection provisions, and encourages the Commission to consider how to harness the benefits of FinTech in driving forward capital market integration in the Union;

Or. en

Amendment 119Billy Kelleher, Stéphanie Yon-Courtin, Ondřej Kovařík, Engin Eroglu, Martin Hlaváček, Gilles Boyer




2. Considers that FinTech will be integral to the success of the Capital Markets Union (CMU) and encourages the Commission to consider how to harness the benefits of FinTech in driving forward capital market integration in the Union, in particular, the participation of retail investors;

Or. en





2. Considers that FinTech will be integral to the success of the Capital Markets Union (CMU) and encourages the Commission to consider how to harness the benefits of FinTech in driving forward capital market integration and retail

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investor participation in the Union;

Or. en





2. Considers that FinTech will be integral to the success of the Capital Markets Union (CMU) and encourages the Commission to consider how to harness the benefits of FinTech in driving forward capital market integration in the Union and elevating its magnitude globally;

Or. en





2. Expresses serious concerns over the role that FinTech will play in the context of the Capital Markets Union (CMU) and encourages the Commission to consider the risks of this emerging sector;

Or. en


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2. Considers that FinTech will be integral to the success of the Capital Markets Union (CMU) and encourages the Commission to consider how to harness the benefits of FinTech in making capital markets in the Union more resilient;

Or. en


Motion for a resolutionParagraph 2 a (new)


2a. Is further concerned about the recent Wirecard scandal as well as the role and potential shortcomings of Germany's financial supervisory authority BaFin in this case; notes that the classification of this FinTech company as a ‘technology’ company instead of as a payments service provider played a central role in the regulatory failures and calls on the Commission to address this problem urgently by ensuring payments companies are classified correctly; notes that while the major responsibility for this regulatory scandal lies with the failure by BaFin and the Bundesbank to properly supervise and regulate the Wirecard group, many EU institutions also have a role in supervising and regulating the various actors involved in this case, including the ECB, ESMA, EIOPA, and the European Commission; calls on the EU and national competent authorities to start an inquiry on the €1.9 billion missing and the potential impact of the group’s insolvency on pensions in the EU; demands that ESMA open an

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investigation into the failure by regulators to identify and stop fraudulent activity and market manipulation committed by Wirecard in its EU companies, including those based in Germany and Ireland;

Or. en

Amendment 125Ondřej Kovařík, Martin Hlaváček, Engin Eroglu, Caroline Nagtegaal, Gilles Boyer, Olivier Chastel, Stéphanie Yon-Courtin, Luis Garicano, Billy Kelleher



2a. Emphasises the increased importance of monitoring and reviewing measures relating to the regulation of digital finance, particularly bearing in mind the increasing relevance of this sector as the world deals with the COVID-19 pandemic;

Or. en

Amendment 126Ondřej Kovařík, Caroline Nagtegaal, Martin Hlaváček, Engin Eroglu, Stéphanie Yon-Courtin, Luis Garicano, Olivier Chastel, Gilles Boyer, Billy Kelleher

Motion for a resolutionParagraph 2 b (new)


2b. Encourages the relevant authorities in the Union to assess the impact of the risks and benefits of the potential global use of the DCEP and its interdependency with China's national blockchain platform;

Or. en

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3. Highlights the importance for the Commission to closely align its work with international fora and regulatory bodies in developing international standards given the cross-jurisdictional nature of digital finance;

3. Highlights the importance for the Commission to closely align its work with international fora and regulatory bodies in developing international standards given the cross-jurisdictional nature of digital finance; recalls in particular the need to ensure interoperability of the EU’s regulatory framework with internationally agreed principles from the Basel Committee on Banking Supervision and the Financial Stability Board;

Or. en





3. Highlights the importance for the Commission to closely align its work with international fora and regulatory bodies in developing international standards given the cross-jurisdictional nature of digital finance, without prejudice to the EU ability to adopt stronger regulatory and supervisory provisions;

Or. en

Amendment 129

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Agnès Evren




3. Stresses that, given the cross-jurisdictional nature of digital finance, close international cooperation is essential; calls, therefore, on the Commission to closely align its work with international fora and regulatory bodies in developing international standards;

Or. fr




3a. Considers that the development of many technologies is still in its infancy and that regulation should therefore only be considered once a new technology has been widely adopted and any potential risks to customers and the financial system have been carefully assessed;

Or. en




3b. Considers that any Union policy response should be proportionate to the

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risks associated with the specific activities;

Or. en


Motion for a resolutionParagraph 3 c (new)


3c. Requests that any proposed legislation be outcome-focused and based on principles rather than prescriptive rules, in order to ensure that the regulatory framework stays relevant to future innovation, regulatory flexibility, and adaptability over time;

Or. en

Amendment 133Gunnar Beck, Maximilian Krah, Jörg Meuthen, Hélène Laporte, Francesca Donato, Valentino Grant, Antonio Maria Rinaldi



4. Calls on the Commission to deploy a proportionate, cross-sectorial and holistic approach to its work on FinTech;

4. Calls on the Commission to deploy a proportionate, cross-sectorial and holistic approach to its work on FinTech, and focus on not smothering innovation with overregulation and red tape;

Or. en


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4. Calls on the Commission to deploy a proportionate, risk-based, cross-sectorial and holistic approach to its work on FinTech;

Or. en





4. Calls on the Commission to deploy a concerted, proportionate, cross-sectorial and holistic approach to its work on FinTech;

Or. fr




5. Calls on the Commission to act as first mover in order to create a favourable environment for European FinTech hubs and firms to scale up;

deleted

Or. fr

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Amendment 137Billy Kelleher, Stéphanie Yon-Courtin, Ondřej Kovařík, Engin Eroglu, Martin Hlaváček




5. Commends the Commission’s initiative to establish a European Forum for Innovation Facilitators (EFIF) in April 2019; Calls on the Commission to draw upon the knowledge and experience derived from the EFIF and to act as first mover in order to create a favourable environment for European FinTech hubs and firms to scale up;

Or. en





5. Calls on the Commission to act as first mover in order to create a favourable environment for European FinTech hubs, European digital champions and firms to scale up for attracting foreign capital and investments and also, promoting the EU competes in global markets;

Or. en



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5. Calls on the Commission to act as first mover in order to create a favourable environment for European FinTech hubs and firms to scale up, for example by exempting such hubs and firms from the increasingly harmonised tax regulation at EU level;

Or. en





5. Calls on the Commission to act as first mover in order to incentivize an accelerated take-up of innovative technologies by the EU financial sector and create a favourable environment for European FinTech hubs and firms to scale up;

Or. en





5. Calls on the Commission to act as first mover in order to create a favourable environment for European FinTech hubs and firms to scale up and boost the EU's position vis-à-vis its international competitors;

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Or. fr





5. Calls on the Commission to act as first mover in order to create a favourable environment for European FinTech hubs and firms as well as the established financial industry using FinTech to scale up;

Or. en





5. Calls on the Commission to act as first mover in order to create a sustainable and lawful environment for European FinTech hubs and firms to scale up;

Or. en

Amendment 144Alfred Sant



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5a. Considers in this respect that FinTech should be considered as an essential and effective tool for European Small and Medium enterprises, able to provide real-time and fast solutions adapted to their financing needs; believes that FinTech has the potential to help closing the SME financing gap;

Or. en




5b. Considers in this respect that FinTech should be considered as an essential and effective tool for European Small and Medium enterprises, able to provide real-time and fast solutions adapted to their financing needs; believes that FinTech has the potential to help closing the SME financing gap;

Or. en

Amendment 146Ondřej Kovařík, Martin Hlaváček, Engin Eroglu, Caroline Nagtegaal, Luis Garicano, Olivier Chastel, Gilles Boyer, Billy Kelleher, Stéphanie Yon-Courtin

Motion for a resolutionParagraph 6 – introductory part


6. Stresses that law and supervision in the area of FinTech should be based on the following principles:

6. Stresses that measures taken should ensure that market players, from small to large, have the regulatory space to innovate and that regulation and supervision in the area of FinTech should be based on the following principles:

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Or. en





6. Stresses that law and supervision of financial and non-financial actors offering financial services should be based on the following principles:

Or. en





6. Stresses that any update of law and supervision in the area of FinTech should reflect the following principles:

Or. en





6. Stresses that supervision in the area of FinTech should be based on the following principles:

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Or. en


Motion for a resolutionParagraph 6 – point a


a. the same services and their associated similar risks should be subject to the same rules;

a. the same services and their associated similar risks should be subject to the same rules, without prejudice to certain technological issues addressed by related legislative framework;

Or. en




a. the same services and their associated similar risks should be subject to the same rules;

a. the same activities and services and their associated similar risks should be subject to the same rules;

Or. en


Motion for a resolutionParagraph 6 – point a a (new)


aa. ensuring financial stability and a high level of consumer protection;

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Or. en


Motion for a resolutionParagraph 6 – point b


b. technology neutrality; b. proportionality and technology neutrality;

Or. en


Motion for a resolutionParagraph 6 – point c


c. a risk-based approach; c. a risk-based approach based on transparency and accountability;

Or. en


Motion for a resolutionParagraph 6 – point c a (new)


ca. respect for the fundamental rights to privacy and data protection, as guaranteed by Articles 7 and 8 of the EU Charter of Fundamental Rights;

Or. en

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ca. preferential treatment of technologies developed in the EU and financed by EU sources;

Or. en

Amendment 157Fabio Massimo Castaldo



ca. high consumer and investor protection standards;

Or. en




ca. a level playing field;

Or. en

Amendment 159

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Isabel Benjumea Benjumea

Motion for a resolutionParagraph 6 – point c b (new)


cb. an innovation and competitive friendly approach;

Or. en




6a. Recalls its commitment to privacy and data protection rights in the EU, in line with Articles 7 and 8 of the EU Charter of Fundamental Rights; stresses that these rights need to be integral to any changes in the financial regulatory framework;

Or. en




7. Points out that Union level measures should not stifle opportunities for businesses to grow and develop within the Union;

deleted

Or. en

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7. Points out that the Union legislation should be adapted and updated to take account of the rapid developments in the expanding markets of crypto-assets and ICOs; emphasises that the current legal uncertainty creates risks to consumer and investor protection and prevents real opportunities for businesses to grow and a sustainable ecosystem for digital finance to develop within the Union;

Or. en





7. Points out that Union level can enhance a regulatory and supervisory level playing field across the internal market and bring certainty to businesses and consumers, thereby offering opportunities for businesses to grow and develop within the Union while avoiding forum shopping and regulatory arbitrage;

Or. en

Amendment 164

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Fabio Massimo Castaldo




7. Points out that Union level measures should not stifle opportunities for businesses to grow and develop within the Union; highlights that well-considered and consistent regulation creates the legal certainty and predictability needed to encourage investment in long-term innovation;

Or. en





7. Points out that Union level measures should not stifle opportunities for businesses to grow and develop within the Union so that the set framework should in no way serve as a barrier to entry for innovative openings especially by young entrepreneurs in the digital sector;

Or. en




7. Points out that Union level 7. Points out that Union level

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measures should not stifle opportunities for businesses to grow and develop within the Union;

measures should not stifle opportunities for businesses to grow and develop within the Union while ensuring at the same time the general objectives of the EU like financial stability, investor and consumer protection or market integrity;

Or. en





7. Points out that Union level measures should not stifle opportunities for businesses to grow and develop within the Union, but should nonetheless strive to achieve comparable standards and outcomes across the Union;

Or. en





7. Points out that Union level measures should not stifle opportunities for businesses to grow and develop within the Union; specially SMEs, as they are the main drivers of the EU economy and labour market;

Or. en

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7. Points out that Union level measures should be uniform and not stifle opportunities for businesses to grow and develop within the Single Market;

Or. en





7. Points out that Union level measures should not stifle opportunities for businesses, and particularly SMEs, to grow and develop within the Union;

Or. fr





7. Points out that measures adopted at EU level should not stifle opportunities for businesses to grow and develop within the Union and beyond;

Or. en

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7a. Points out that regulatory sandboxes and innovation hubs can be useful tools for FinTechs to test out innovative financial products, financial services or business models in a controlled environment and to allow competent authorities to gain a better understanding of such activities and develop regulatory expertise in emerging technologies;

Or. en




7a. Notes the continually evolving methods used for money laundering and terrorist financing; emphasises, therefore, the need for the Commission’s approach to digital finance to be cognisant of this and sufficiently robust to combating ML/TF;

Or. en


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7a. Highlights the potential of EU-wide regulatory sandboxes in promoting innovation and competitiveness as well as facilitating dialogue and understanding between firms and regulators;

Or. en




7b. Notes that many FinTechs struggle with passporting issues and thus with scaling their business beyond their home market;

Or. en




8. Highlights the importance of the triangle of trust, identity and data in order to ensure that operators, consumers and supervisors are able to have confidence in digital finance;

8. Highlights the importance of the triangle of trust, identity and data in order to ensure that operators, consumers and supervisors are able to have confidence in digital finance; considers appropriate to further analyse initiatives for implementing CBDCs both within the Union and on a global level; calls on the Commission and EU supervisory

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authorities to promote research and international discussions in this field, assessing potential benefits and all implications; believes that parameters and principles for analysis should rely on the role of CBDCs in supplementing the decline in cash use, ensuring people’s trust in the financial system, providing for greater financial inclusion and access to a public means of payment, all the while guaranteeing financial stability and the pursuit of socio-economic objectives;

Or. en





8. Highlights the importance of the triangle of rules, identity verification and data in order to ensure that operators’ activities are subject to appropriate safeguards and restrictions, consumers are adequately protected and aware of risks and supervisors are able to monitor developments and take appropriate actions in the area of digital finance, while preserving the integrity of existing capital markets;

Or. en



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8. Highlights the importance of the triangle of trust, identity protection and data security in order to ensure that operators, consumers and supervisors are able to have confidence in digital finance;

Or. en





8. Highlights the importance of the triangle of trust, identity and data in order to ensure that operators, investors, consumers and supervisors can place confidence in digital finance;

Or. en

Amendment 180Luis Garicano, Stéphanie Yon-Courtin, Gilles Boyer



8a. Stresses the need for European and national supervisory authorities to overcome their differences; calls for changes to the ESMA Regulation ensuring that ESMA can swiftly and decisively step in when national supervisory authorities fail to act in preventing serious threats to the orderly functioning and integrity of financial markets or the stability of the financial system in the Union; strongly calls on the

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Commission to present as an ambitious reform of the governance of ESMA, including the appointment of independent Directors in the Management Board, with enhanced powers of direct supervision and on the prevention against serious threats to the orderly functioning and integrity of financial markets or the stability of the financial system in the Union; notes that the limited impact of supervisory convergence in promoting a common European model, should lead to empowering ESMA, EIOPA and EBA, with a stronger role in reducing the existing obstacles to cross-border financial operations;

Or. en




8a. Points out that the financial supervisory framework across Member States is currently structured on four different approaches: institutional, functional, and integrated and Twin Peaks, which results in major fragmentation and lack of convergence in the EU financial regulatory and supervisory architecture; in order to address this issue and reduce regulatory and supervisory arbitrage opportunities, calls on the Commission to launch a new consultation on the review of the European system of financial supervision with a main goal to create a Twin Peaks-based, efficient and harmonised supervisory framework;

Or. en

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8a. Considers that Digital Finance can improve the quality and efficiency of financial services in the EU; Highlights that solid financial markets are inclusive, democratic as well efficient in the allocation of capital and the distribution of risk; Notes that the digital finance has the properties that will allow better allocative efficiency, reduce the concentration of risk, increase transparency and comparability in the pricing of financial services and reduce financial exclusion;

Or. en

Amendment 183Jonás Fernández



8a. Agrees with the ECB on the importance of physical money as legal tender; stresses that progress in the field of virtual currencies must not lead to restrictions on retail cash payments or to the abolition of cash;

Or. en


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8a. Calls on the Commission to develop new rules only for new services and new products and to adapt and amend existing rules for products and services which are subject to changed processes

Or. en




8a. Calls on supervisors to keep pace with technological developments and not inadvertently become a barrier to financial services innovation;

Or. en




8a. Calls for the risk of speculation on these virtual currencies to be monitored;

Or. fr

Amendment 187

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Eva Kaili



8b. Considers digital finance as a strong market mechanism that can remedy many of the malfunctions of the existing financial system, especially when legacy financial service providers exploit their oligopolistic status to impose in a non-transparent way increases in transaction fees and hidden costs to the consumers;

Or. en




8b. Calls for a structured dialogue between supervisors on financial, anti-money laundering, data privacy and cyber security challenges and opportunities;

Or. en




8c. Underscores that the transition from Open Banking to Open Finance is a strategic priority of the European

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financial markets strategy;

Or. en


Motion for a resolutionParagraph 8 d (new)


8d. Considers technological neutrality and business model neutrality as critical principles for the regulator for the achievement of an efficient, strong and globally competitive European digital finance framework; Highlights that the regulator should not discriminate based on the technology used by the financial service provider, as long as technology-specific risks are addressed and same regulation for same risk applies; highlights that the regulator should not favour legacy business models over innovative ones and maintain a clear, institutionally certain approach based on principles that ensure a level playing field for everybody;

Or. en


Motion for a resolutionParagraph 8 e (new)


8e. Considers that an innovative financial system has strategic, societal and growth implications for the Union and supports the acceleration of technology transfer to the financial sector

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to make sure that emerging technological options coming from data analytics, big data, machine learning, blockchain, IoT, hyper-performance computing, and enhanced connectivity can improve the quality, resilience and sustainability of Union financial services;

Or. en


Motion for a resolutionSubheading 3


Defining a Framework for Crypto-Assets Defining a Regulatory Framework for Crypto-Assets

Or. en




Defining a Framework for Crypto-Assets Crypto-Assets, Custodians and Crypto-exchanges

Or. en



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9. Considers that developing a pan-European taxonomy for crypto-assets is desirable as a step towards fostering a common understanding, facilitating collaboration across jurisdictions and providing greater regulatory certainty for market participants engaged in cross border activity; recommends taking into account the importance of international cooperation and global initiatives as regards frameworks for crypto-assets, bearing in mind in particular their borderless nature; cautions, however, that developing an open-ended taxonomy template may be more appropriate for this evolving market segment;

9. Considers that developing a pan-European taxonomy for new products such as crypto-assets is desirable as a step towards fostering a common understanding, facilitating collaboration across jurisdictions and providing greater regulatory certainty for market participants engaged in cross border activity; recommends taking into account the importance of international cooperation and global initiatives as regards frameworks for crypto-assets, bearing in mind in particular their borderless nature; cautions, however, that developing an open-ended taxonomy template may be more appropriate for this evolving market segment; emphasises that consumer-focused startups are often building innovative financial services to the benefit of EU citizens and companies, and that any legislation should be designed with a view to empower more innovation and consumer-choice in financial services;

Or. en




9. Considers that developing a pan-European taxonomy for crypto-assets is desirable as a step towards fostering a common understanding, facilitating collaboration across jurisdictions and providing greater regulatory certainty for market participants engaged in cross border activity; recommends taking into account the importance of international cooperation and global initiatives as regards

9. Considers that developing a comprehensive pan-European taxonomy for crypto-assets is a necessary step towards fostering a EU common understanding, establishing an adequate regulatory regime, facilitating a coordinated approach across jurisdictions and providing greater legal and regulatory certainty for market participants engaged in cross border activity; recommends taking

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frameworks for crypto-assets, bearing in mind in particular their borderless nature; cautions, however, that developing an open-ended taxonomy template may be more appropriate for this evolving market segment;

into account the importance of international cooperation and global initiatives as regards frameworks for crypto-assets, including stablecoins, bearing in mind in particular their borderless nature and the potential systemic risks for financial stability and fair competition; considers, however, that developing an open-ended taxonomy template at EU level taking account of this evolving market segment should be a priority and serve as a basis for appropriate legislative and regulatory actions;

Or. en

Amendment 196Eero Heinäluoma, Pedro Marques, Alfred Sant, Jonás Fernández, Aurore Lalucq




9. Considers that developing a pan-European taxonomy for crypto-assets is desirable as a step towards fostering a common understanding, facilitating collaboration across jurisdictions and providing greater regulatory certainty for market participants engaged in cross border activity; recommends taking into account the importance of international cooperation and global initiatives as regards frameworks for crypto-assets, bearing in mind in particular their borderless nature; cautions, however, that developing an open-ended taxonomy template may be more appropriate for this evolving market segment; believes, however, that there is no one size fits all solution when it comes to legal qualification of crypto-assets and therefore a framework which allows for monitoring, adaption and product intervention by EU supervisors is

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important;

Or. en





9. Considers that not all crypto-assets can be regulated in the same way, solely on the basis of the fact that they are digital; considers, therefore, that developing a pan-European taxonomy for crypto-assets is desirable as a step towards fostering a common understanding, facilitating collaboration across jurisdictions and providing greater regulatory certainty for market participants engaged in cross border activity; recommends taking into account the importance of international cooperation and global initiatives as regards frameworks for crypto-assets, bearing in mind in particular their borderless nature; cautions, however, that developing an open-ended taxonomy template may be more appropriate for this evolving market segment;

Or. fr




9. Considers that developing a pan-European taxonomy for crypto-assets is

9. Considers that the crypto-assets sector must be subject to robust regulation

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desirable as a step towards fostering a common understanding, facilitating collaboration across jurisdictions and providing greater regulatory certainty for market participants engaged in cross border activity; recommends taking into account the importance of international cooperation and global initiatives as regards frameworks for crypto-assets, bearing in mind in particular their borderless nature; cautions, however, that developing an open-ended taxonomy template may be more appropriate for this evolving market segment;

and recommends the Commission to take into account the importance of international cooperation and global initiatives as regards frameworks for crypto-assets, bearing in mind in particular their borderless nature; notes the speculative nature of various crypto-assets and the financial risks that arise from lack of regulation; calls for a repeal of cryptocurrencies;

Or. en





9. Considers that developing a pan-European taxonomy for crypto-assets is desirable as a step towards fostering a common understanding, facilitating collaboration across jurisdictions and providing greater legal certainty for market participants operating cross border; recommends taking into account the importance of international cooperation and global initiatives as regards frameworks and taxonomy for crypto-assets, bearing in mind in particular their borderless and multi-jurisdictional nature; cautions, however, that developing an open-ended taxonomy template may be more appropriate for this evolving market segment into instead of strictly locked definitions and classification;

Or. en

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Amendment 200Stéphanie Yon-Courtin, Olivier Chastel, Gilles Boyer




9. Considers that developing a pan-European taxonomy for crypto-assets is desirable as a step towards fostering a common understanding, facilitating collaboration across jurisdictions and providing greater regulatory certainty for market participants engaged in cross border activity; recommends taking into account existing national regulatory and supervisory frameworks and the importance of international cooperation and global initiatives as regards frameworks for crypto-assets, bearing in mind in particular their borderless nature; proposes, however, that developing an open-ended taxonomy template may be more appropriate for this evolving market segment;

Or. en




9. Considers that developing a pan-European taxonomy for crypto-assets is desirable as a step towards fostering a common understanding, facilitating collaboration across jurisdictions and providing greater regulatory certainty for market participants engaged in cross border activity; recommends taking into account the importance of international cooperation

9. Considers the need for a common understanding, facilitating collaboration across jurisdictions and providing greater supervisory and legal certainty for market participants engaged in cross border activity; recommends taking into account the importance of international cooperation and global initiatives as regards frameworks for crypto-assets, bearing in

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and global initiatives as regards frameworks for crypto-assets, bearing in mind in particular their borderless nature; cautions, however, that developing an open-ended taxonomy template may be more appropriate for this evolving market segment;

mind in particular their borderless nature; cautions, however, that developing an open-ended taxonomy template may be more appropriate for this evolving market segment, but will ultimately be detrimental to legal certainty, and will be quickly outdated due to technological progress;

Or. en

Amendment 202Ondřej Kovařík, Martin Hlaváček, Engin Eroglu, Caroline Nagtegaal, Luis Garicano, Billy Kelleher, Gilles Boyer




9. Considers that developing a pan-European taxonomy for crypto-assets is desirable as a step towards fostering a common understanding, facilitating collaboration across jurisdictions and providing greater regulatory certainty for market participants engaged in cross border activity; recommends taking into account the importance of international cooperation and global initiatives as regards frameworks for crypto-assets, bearing in mind in particular their borderless nature; proposes, however, that developing an open-ended taxonomy template may be more appropriate for this evolving market segment;

Or. en



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9a. Notes that in the absence of a common EU regulatory approach for crypto-assets, Member States have already started adopting unilateral legislative and supervisory actions and face increasing pressure to act due to consumer protection concerns; points out that divergent interpretations and an uncoordinated approach across Member States can lead to market fragmentation, increase legal uncertainty, undermine the level playing field and provide opportunities for regulatory arbitrage;

Or. en

Amendment 204Ondřej Kovařík, Martin Hlaváček, Engin Eroglu, Caroline Nagtegaal, Luis Garicano, Olivier Chastel, Gilles Boyer, Billy Kelleher



9a. Emphasises that such an open taxonomy must be based on common understandings of the various crypto-assets involved; requests, therefore that the definitions of crypto-assets and their subclasses be harmonised across EU and member states;

Or. en




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9a. Reminds the importance of digital financial education which contributes to the stability of financial system and promotes transparency and duties of information of financial institutions;

Or. en

Amendment 206Ondřej Kovařík, Martin Hlaváček, Engin Eroglu, Caroline Nagtegaal, Luis Garicano, Olivier Chastel, Gilles Boyer, Billy Kelleher



9b. Stresses that any definition of crypto-assets must take into account future evolution of the crypto-asset market;

Or. en




9c. Points out that, at this stage, the use of stablecoins is not yet prominent within the Union; highlights the need for any future stablecoin-specific framework to be born out of the coming crypto-asset framework, representing an evolution of the legislation with the aim of offering the similar level of security as existing means of payments; believes that before any framework for stablecoins is developed, the architecture of this form of crypto-asset must be examined thoroughly;

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Or. en




10. Believes, therefore, that any further categorisation should be balanced and flexible in order to give space for innovation in the sector while ensuring that risks can be identified at an early stage;

10. Believes, therefore, that any further categorisation should be based on feedback from European and global market intelligence, should be balanced and flexible in order to give space for innovation in the sector while ensuring that risks can be identified at an early stage;

Or. en





10. Believes, therefore, that any further categorisation should be comprehensive and flexible in order to be adaptable to evolving business models and cyber risks, while giving space for innovation in the sector and at the same time ensuring that risks can be identified and addressed at an early stage;

Or. en


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10. Believes that, given that crypto-assets take many forms and are constantly evolving, any further categorisation should be balanced, adaptable and flexible in order to give space for innovation in the sector while ensuring that risks can be identified at an early stage;

Or. fr





10. Believes, therefore, that any further categorisation should be balanced in order to ensure that risks can be identified at an early stage;

Or. en




10. Believes, therefore, that any further categorisation should be balanced and flexible in order to give space for innovation in the sector while ensuring that

10. Believes, therefore, that any further categorisation should be cautious, restrained, balanced and flexible in order to give space for innovation in the sector

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risks can be identified at an early stage; while ensuring that risks can be identified at an early stage;

Or. en





10. Believes, therefore, that any further categorisation should be balanced and flexible in order to give space for innovation and competitiveness in the sector while ensuring that risks can be identified at an early stage;

Or. en





10. Believes, therefore, that any further categorisation should be balanced and flexible in order to give space for innovation in the sector while ensuring that risks can be identified and mitigated at an early stage;

Or. en

Amendment 215Eero Heinäluoma, Pedro Marques, Alfred Sant, Paul Tang


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Paragraph 10 a (new)


10a. Expresses concern about the serious carbon footprint attached to the use and dissemination of crypto-assets; calls on the Commission to take this into account in any forthcoming regulatory initiative, having in mind the EU’s commitment to the Sustainable Development Goals and to the necessary transition to a climate-neutral society by 2050 at the latest;

Or. en




10b. Is concerned about the findings of a recent research1a demonstrating that half of the crypto-assets transactions is linked to illegal activities, like the buying or selling of illegal goods or services (weapons, drugs transactions), money laundering and, payments in ransomware attacks; highlights recent findings which suggests that 76 billion dollars of illegal activity per year involves Bitcoins;_________________1a Electronically available via https://ssrn.com/abstract=3102645.

Or. en


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11. Further stresses that clear guidance on the applicable regulatory and prudential processes is needed in order to provide regulatory certainty regarding crypto-assets;

11. Calls for clearer guidance on regulatory and prudential processes to follow in order to provide regulatory certainty and adequate supervision for a particular crypto-assets; subscribes to the view of the Basel committee and EBA that banks acquiring crypto-assets, should apply a conservative prudential treatment to such exposures, especially for high risk crypto-assets; shares furthermore the view that strong due diligence, a robust governance and risk management, full disclosure of any exposure and a solid dialogue with the supervisors are all of paramount importance; believes that the forthcoming revision of the capital requirements framework should include amendments in this respect;

Or. en

Amendment 218Stéphanie Yon-Courtin, Gilles Boyer, Olivier Chastel




11. Further stresses that clear guidance on the applicable regulatory and prudential processes is needed in order to provide regulatory certainty regarding crypto-assets; notes that such guidance from the Commission and from ESMA could lead to establishing a transitional pilot regime, limited in time and in scope, with targeted regulatory exemptions for crypto-assets applying existing sectorial legislation, subject to enhanced supervision from relevant national supervisory authorities and from the joint ESAs committee;

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Or. en





11. Further stresses that clarity on the applicable regulatory and prudential processes is needed in order to provide regulatory certainty and an adequate prudential treatment regarding high-risk crypto-assets, taking account of their high volatility and speculative nature, as well as to ensure stronger supervisory convergence in this area; underlines in particular the need for a targeted review of the CRR/CRD framework and a common approach to the accounting treatment of crypto-assets;

Or. en





11. Further stresses that clarification and clear guidance on the applicable regulatory and prudential framework to crypto-assets that currently fall within the scope of EU legislation, i.e. those that qualify as ‘financial instruments’ under MiFID II and as ‘e-money’ under EMD2 is needed in order to provide clarity and legal certainty both to European and National Supervisory Authorities and

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stakeholders, regarding crypto-assets;

Or. en





11. Further stresses that clear guidance on the applicable regulatory and prudential processes is needed in order to provide regulatory certainty regarding crypto-assets, as well as to enhance transparency and consumer protection;

Or. en





11. Further stresses that clear guidance on the applicable regulatory and prudential processes is needed in order to provide regulatory and prudential certainty regarding crypto-assets;

Or. en



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Paragraph 11 a (new)


11a. Considers that until a EU taxonomy is available, regulated and licensed financial institutions should be subject to a temporary ban of crypto-assets related activities in consideration of the high risks to consumer and investors protection, financial stability, and market integrity and reputation, with the exception of small-scale or prototype activities subject to the approval of competent authorities; points out that once such taxonomy is established in EU law, such institutions should carry out activities related to high-risk crypto-assets only subject to strong safeguards and tight limits, based on an assessment of the potential risk of the activities under the most conservative assumptions;

Or. en




11a. Further stresses that clear guidance is needed on the applicability of existing regulatory and prudential processes to crypto-assets which qualify as financial instruments as far as EU legislation is concerned, in order to provide regulatory certainty regarding crypto-assets; stresses that this guidance must be provided consistently at the EU level, to avoid different practices of qualification and supervision by national authorities, which creates an un-level playing field, forum shopping and regulatory arbitrage in the internal

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market;

Or. en




11b. Considers that all agents and participants entering into transactions above a 'de minimis' threshold in crypto-assets related activities outside of the scope of the regulated and licensed financial institutions should be subject to the standards of the existing regulatory framework including AML/CFT, KYC, MiFID, Market Abuse Regulation, PSD, Short Selling Regulation, Prospectus Regulation, Central Securities Depositories Regulation, EMIR and UCITS, as applicable;

Or. en




11c. Stresses that risks related to holdings and exposures to crypto-assets should be fully integrated in the supervisory review and evaluation process (SREP) once the taxonomy is available; highlights in this regard the need for adequate and standardised disclosure

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requirements of any material exposures or services related to crypto-assets;

Or. en




12. Points out that applying existing regulations to previously unregulated crypto-assets will be necessary, as will creating bespoke regulatory regimes for evolving crypto-asset activities, such as initial coin offerings;

12. Points out that applying existing regulations to previously unregulated crypto-assets will be necessary, as will creating bespoke and stringent regulatory regimes, including evolving crypto-asset activities, such as initial coin offerings, so as to avoid unwanted legitimisation and ensure adequate consumer protection and market integrity; stresses in particular the need to establish stringent rules regarding information to potential clients, which should be clear and not misleading, as well as suitability assessments requirements;

Or. en

Amendment 228Eero Heinäluoma, Pedro Marques, Alfred Sant, Aurore Lalucq





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Stresses that initial coin offerings have potential in funding SMEs, innovative start-ups and scale-ups, can accelerate technology transfer, and can be an essential part of the Capital Markets Union;

Or. en





12. Points out that applying existing regulations to previously unregulated crypto-assets will be necessary, as will creating bespoke regulatory regimes for evolving crypto-asset activities, such as initial coin offerings; points out that certain types of crypto-assets could indeed fit well into the existing regulatory framework, e.g. as ‘transferable securities' as defined in MiFID II;

Or. en





12. Points out that addressing regulatory gaps in existing EU legislation through targeted changes will be necessary in order to be fit for unregulated – as of today - crypto-assets, qualified to be brought in scope; likewise, creating bespoke regulatory regimes for

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evolving crypto-asset activities, such as initial coin offerings (ICOs) or initial exchange offerings (IEOs);

Or. en





12. Points out that applying the objectives in existing regulations to all types of crypto-assets will be necessary, as will creating bespoke regulatory regimes for evolving new types of crypto-asset activities, while existing rules will need to be adapted accordingly for FinTech regarding existing assets;

Or. en





12. Points out that applying existing regulations to previously unregulated crypto-assets will be difficult, since such technological innovations usually innovate by finding ways to circumvent new regulatory initiatives;

Or. en

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Amendment 233Eero Heinäluoma, Pedro Marques, Alfred Sant, Jonás Fernández



12a. Calls on the Commission to assess the advantages of proposing legislative framework for initial coin offerings and initial exchange offerings to increase legal certainty, investor and consumer protection, raise warnings, and reduce risks stemming from asymmetric information, fraudulent behaviour and illegal activities;Stresses however that wider regulation of crypto-assets and related activities may have trade-offs, such as risking legitimising crypto-assets and encouraging wider adoption;Highlights therefore that it will also require further supervisory resources and in-house technological know-how for supervisors;

Or. en




12a. Points out that, in a single market for capital, diverging national supervisory practices can have significant drawbacks and this is particularly true for highly mobile crypto-assets; calls, therefore, for crypto-asset related activities to fall within the regulatory remit of the European Central Bank;

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Or. en




12b. Takes the view that, if a wide legislative framework is proposed, the “same services, same rules” principle must apply while being subject to the necessary adaptations; stresses that, where appropriate, strict fit and proper tests should be applied to those who issue the assets and that in order to increase investor protection and transparency, a standardised and regulated whitepaper should be published at the time of issuance;Highlights that a harmonised regulatory framework only makes sense , if supervision is coordinated at the EU level; notes, in particular, the need to oversee the work of national innovation facilitators, such as innovation hubs and regulatory sandboxes, and ensure that they do not undermine the level playing field in the internal market, and that mechanisms for cooperation and coordination are put in place.

Or. en

Amendment 236Eero Heinäluoma, Pedro Marques, Alfred Sant, Jonás Fernández, Aurore Lalucq



13. Highlights that a common Union 13. Highlights that a common Union

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framework on crypto-assets should help increase consumer and investor protection, enhance know your customer (KYC) obligations and oversight of the underlying technology;

framework on crypto-assets should help increase consumer and investor protection, enhance know your customer (KYC) obligations and oversight of the underlying technology;

Takes further the view that the dissemination of FinTech should leave no one behind and that the availability of FinTech solutions for consumers and non-professional investors must go hand in hand with greater efforts to ensure transparency, public awareness and access to information; calls on the Commission and Member States to invest in programmes to enhance digital and financial literacy;

Or. en




13. Highlights that a common Union framework on crypto-assets should help increase consumer and investor protection, enhance know your customer (KYC) obligations and oversight of the underlying technology;

13. Highlights that a common Union framework on crypto-assets should help address concerns related to consumer and investor protection, cybersecurity, market integrity and financial stability, and should enhance Anti Money Laundering (AML), Counter Terrorist Financing (CTF) and know your customer (KYC) obligations, and oversight of the underlying technology;

Or. en



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Paragraph 13



13. Highlights that a common Union framework on crypto-assets should safeguard a high level of consumer and investor protection market integrity and enhanced reliance in digital economy through robust Know Your Customer (KYC) and Know your Business (KYB) obligations, regulation and oversight of the underlying technology;

Or. en





13. Highlights that a common Union framework on crypto-assets should help increase consumer and investor protection, enhance the application of anti-money laundering provisions, such as know your customer (KYC) obligations, and improve oversight of the underlying technology;

Or. en




13. Highlights that a common Union framework on crypto-assets should help

13. Highlights that a common Union framework on crypto-assets should help

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increase consumer and investor protection, enhance know your customer (KYC) obligations and oversight of the underlying technology;

increase consumer and investor protection, fully enforce know your customer (KYC) obligations and oversight of the underlying technology;

Or. en





13. Highlights that a common Union framework on crypto-assets could help increase consumer and investor protection, enhance know your customer (KYC) obligations and oversight of the underlying technology;

Or. en




13a. Underlines that existing gaps in the anti-money laundering (AML) framework for crypto-assets such as in the application of the KYC principle, lead to an uneven playing field between different types of financial activity; considers that AML/CTF provisions for providers of services related to crypto-assets should be enforced also for foreign providers offering their services in the Union; highlights that a comprehensive definition of ‘virtual assets’ is needed to better

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reflect the nature and function of crypto-assets for the purpose of AML/CTF; points out that the definition of terrorist financing shall also be updated to ensure that crypto-assets are adequately covered;

Or. en




13a. Notes that the introduction of any central bank developed digital currency goes along with significant challenges and risks (e.g. financial stability risks, deposit protection, implications for transmission of monetary policy, implication on credit intermediation, substitution of other means of payments, crowding out of private market participants etc.) that could easily outweigh the perceived benefits of CBDCs;

Or. en




13a. Points out that crypto-assets present a heightened risk of money laundering or terrorist financing; notes, however, that the AMLD V framework in the European Union is now outdated when compared to the current

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international AML/CFT standards for crypto-assets;

Or. en




13a. Underlines that crypto-assets consist significant technological advances that can improve the landscape of payments and financing of entrepreneurial activities especially where the private market financing instruments are weak;

Or. en




13b. Calls further on the Commission to expand the scope of obliged entities under the AML/CTF framework, in line with the recommendations of the Financial Action Task Force (FATF) and ESMA, to ensure that all activities involving crypto-assets, with regards to providers of virtual-to-virtual exchanges, other categories of wallet providers and initial coin offerings, are subject to the same AML/CTF obligations;

Or. en

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13b. Notes that some of the perceived shortcomings of the European payment system, could be remedied with gradual improvements of the existing regime such as an increased roll-out of cost-efficient instant payments;

Or. en




13b. Notes that the classification of tokens can be subject to strong but agile criteria including (i) the nature of the issuer, (ii) the underlying asset, and (iii) the underlying economic function;

Or. en




13c. Considers that Virtual Assets Service Providers (VASP) operating in the

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EU should be subject to mandatory registration or licensing requirements with the competent authorities before conducting business within the EU, including the obligation to appoint a resident executive director and have substantive management presence in the jurisdiction of registration; underlines further that, in line with FATF Guidelines, the VASP’s shall be required to seek prior approval by the competent authorities for substantive changes in shareholders, business operations and structures, to prevent criminals from owning or holding a significant controlling interest or management function in a VASP and ensure the fitness and properness of directors, managers and shareholders;

Or. en




13c. Stresses that cryptocurrency is a type of crypto-asset usually without known originator that can be used as a means of payment but not always as a store of value due to increased price fluctuations; stablecoins are means of payment that derive their price stability from a portfolio of underlying assets that are comparatively stable in their fluctuations; stresses that cryptocurrencies and stablecoins have significant unique properties, including the tracking back of illegal payments on the ledger as well as the capacity the payments to be encoded in smart contracts;

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Or. en




13c. Notes that a so called "trigger solution", i.e. a suitable interface allowing for a DLT-based settlement of a transaction triggering a payment via the conventional payment system, might be a conceivable alternative to CBDCs1a; invites central banks to further explore this line of reasoning;_________________1a cf. Deutsche Bundesbank Monthly Report July 2019 "Crypto tokens in payments and securities settlement"

Or. en




13d. Highlights that cryptocurrencies and stablecoins bring important challenges in the European payments system; A unified approach toward these instruments is critical for the integration of the European payments system in terms of efficiency, data privacy and AML; Highlights that the ECB should explore the utility of a crypto-Euro and its competitive impact in the global markets;

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Or. en




13d. Reiterates the need to establish a European Financial Intelligence Unit (FIU) to effectively address the AML/CTF risks arising from cross-border activities and new technologies, in particular those posed by crypto-assets;

Or. en




13e. Considers that initial coin offerings (ICOs) is a token generation procedure for the financing of entrepreneurial projects through digital Crowdfunding; Stresses that different types of tokens can be created including security-type tokens that carry claims over the future cash flows of the firm (debt) or equity claims, and commodity-type tokens that carry claims over a future product or service of the issuing firm; Stresses the need the European Commission to design a functional definition of tokens taking into consideration the variety of hybrid forms; Suggests the Commission to employ a flexible definition subject to the underlying economic function of the

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token (e.g. when a commodity token is traded in a secondary crypto-exchange with purpose to create capital gains, then the token should be qualified as a “security token”);

Or. en


Motion for a resolutionParagraph 13 f (new)


13f. Calls on the Commission to update the existing Crowdfunding Platforms Regulation so as to include into its scope Platforms for Security Tokens Offerings (STOs) in the spirit of technological and business model neutrality;

Or. en


Motion for a resolutionParagraph 13 g (new)


13g. Calls on the Commission to propose a coherent framework for the functioning of custodian e-wallet providers and crypto-exchanges; Notes that the EC’s report on the “30 Recommendations for financial Innovations” admits that there is no existing framework for the custodian e-wallet providers; Notes that according to AMLD5 (Art.47) the Member States shall ensure that providers of exchange services between virtual currencies and fiat

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currencies, and custodian e-wallet providers, are registered or licensed, but there is a very weak adoption so far from the Member States;

Or. en


Motion for a resolutionParagraph 13 h (new)


13h. Notes the update of the existing Recommendation 16 of the Financial Action Task Force (FATF) regarding the Traveling Rule for the Virtual Asset Service Providers (VASPs) and calls on the Commission to explore its implications for the crypto-exchange and e-wallet providers within the framework of the AMLD5;

Or. en


Motion for a resolutionParagraph 13 i (new)


13i. Advanced Technological SolutionsStresses the importance of Machine Learning applications in the financial services and their significance in improving financial operations; Highlights that the increase in efficiency should be accompanied by ethical, social and humanistic parameters as algorithmic financial decision making can generate inefficiencies and probabilistic errors that

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are not random but rather concentrated around specific social groups generating thus social exclusions;

Or. en


Motion for a resolutionParagraph 13 j (new)


13j. Advanced Technological SolutionsCalls on the Commission to take into account the provisions of GDPR as well as the Policy Papers of about the EU AI Strategy, the EU Data Strategy and the EU Paper on the Liability of AI, Robotics and IoT and propose a dedicated regulatory framework on the uses of AI by the Financial Sector;

Or. en


Motion for a resolutionParagraph 13 k (new)


13k. Advanced Technological SolutionsCalls on the Commission to explore the potential of Smart Contracts in the financial sector, identify benefits and risks and provide recommendations about the uses of smart contracts by the financial sector;

Or. en

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Motion for a resolutionParagraph 13 l (new)


13l. Advanced Technological SolutionsCalls on the Commission to explore the possibility of "securities on the blockchain" (aka smart financial assets), their benefits in increasing liquidity, access to capital, reduction of the financial transaction costs and increase in the transparency in the issuance of securities; call on the commission to explore operational and financial risks of smart financial assets;

Or. en


Motion for a resolutionSubheading 4 a (new)


B. Advanced Technological Solutions

Or. en




14. Points out that with the increasing 14. Points out that with the increasing

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digitalisation of financial services, as well as outsourcing to external IT solution or maintenance providers, such as cloud providers, the exposure of financial institutions and markets to disruption caused by internal failures or external attacks is becoming more pronounced;

digitalisation of financial services, as well as outsourcing to external IT solution or maintenance providers, such as cloud providers, the exposure of financial institutions and markets to disruption caused by internal failures or external attacks is becoming more pronounced; is concerned about the growing shadow banking sector in Europe, which includes investment funds, money market funds, FinTechs and other financial intermediaries, given the fact that current banking regulations do not apply to these institutions; stresses that shadow banking is characterised by liquidity and maturity mismatches; high leverage; lack of regulation and lack of access to public backstops;

Or. en




14. Points out that with the increasing digitalisation of financial services, as well as outsourcing to external IT solution or maintenance providers, such as cloud providers, the exposure of financial institutions and markets to disruption caused by internal failures or external attacks is becoming more pronounced;

14. Points out that the increasing digitalisation of financial services, as well as outsourcing to external IT solution or maintenance providers such as cloud providers, can help in particular financial start-ups to innovate and have access to technology that they would otherwise not have; highlights at the same time that the exposure of financial institutions and markets to disruption caused by internal failures or external attacks is becoming more pronounced; considers that guiding objectives of any proposed legislation in this regard should therefore be security, resiliency and efficiency;

Or. en

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14. Points out that with the increasing digitalisation of financial services, as well as outsourcing to external IT solution or maintenance providers, such as cloud providers, the exposure of financial institutions and markets to disruption caused by internal failures or external attacks is becoming more pronounced and thereby that operational risks need to be thoroughly assessed in such evolving landscape to take into account and stress test plausible, but extreme scenarios;

Or. en





14. Points out that with the increasing digitalisation of financial services, as well as outsourcing to external IT solution or maintenance providers, such as cloud providers, the exposure of financial institutions and markets to disruption caused by internal failures or external attacks is becoming more pronounced; underlines that those risks are particularly relevant in cases of outsourcing to third country services providers;

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Or. en





14. Points out that with the increasing digitalisation of financial services, as well as outsourcing to external IT solution or maintenance providers, such as cloud providers, the exposure of financial institutions and markets to disruption caused by internal failures, or external attacks or as a consequence of financial distress (resolution) is becoming more pronounced;

Or. en





14. Points out that with the increasing digitalisation of financial services, as well as outsourcing to external IT solution or maintenance providers, such as cloud providers, the exposure of financial institutions and markets to disruption caused by internal failures or external attacks by foreign powers is becoming more pronounced;

Or. en

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14a. Takes note of the fact that while the total costs of cyber incidents are notoriously hard to establish, industry estimates range from USD 45 billion to USD 654 billion for the global economy in 2018;highlights that the financial sector has traditionally been a key target for cybercriminals looking for financial gain;is concerned by the ESRB analysis which shows that it is indeed conceivable that a cyber-incident could evolve into a systemic cyber crisis that threatens financial stability1a;_________________1a ESRB publishes a report on systemic cyberattacks in February 2020 (https://www.esrb.europa.eu/news/pr/date/2020/html/esrb.pr200219~61abad5f20.en.html)

Or. en




14a. Points out that some sectoral pieces of EU financial services legislation (e.g. PSD II, CSDR, EMIR) already contain specific requirements in relation to information security management, while this is not the case for other areas of

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EU financial services legislation;

Or. en




14a. Recalls that supervisory authorities have issued consumer warning regarding ICOs with reference to crypto, as lack of appropriate transparency and disclosure requirements can cause potential and serious risks for investors;

Or. en




15. Calls on the Commission to propose legislative changes in the area of ICT and cyber security requirements for the Union financial sector in order to address any inconsistencies, gaps and loopholes that are found to exist in relevant law;

15. Calls on the Commission to propose legislative changes in the area of ICT and cyber security requirements for the Union financial sector in order to address any inconsistencies, gaps and loopholes that are found to exist in relevant law; in this regard, calls on the Commission to consider the need to have a supervisory overview of the ICT providers, noting the concentration and contagions risks that can be posed by a heavy reliance by the financial services sector on a small number of ICT and cloud computing providers;

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Or. en





15. Calls on the Commission to propose legislative changes in the area of ICT and cyber security requirements for the Union financial sector in order to address any inconsistencies, gaps and loopholes that are found to exist in relevant law; notes that over reliance on non-EU ICT services providers, and on ICT products and services offered by non-EU market participants, is a particular area of concern;

Or. en





15. Calls on the Commission to propose legislative changes in the area of ICT and cyber security requirements for the Union financial sector, taking into account international standards, in order to address any inconsistencies, gaps and loopholes that are found to exist in relevant law;

Or. en

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15. Calls on the Commission to propose legislative changes in the area of ICT and cyber security requirements for the Union financial sector in order to address existing inconsistencies, gaps and loopholes in relevant law, particularly when it comes to consumer data protection;

Or. en





15. Calls on the Commission to propose refits in the area of ICT and cyber security requirements for the Union financial sector in order to address any inconsistencies, gaps and loopholes that are found to exist in relevant law;

Or. en



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16. Considers that these changes should focus on four key areas:

16. Considers that any legislative changes should be proportionate to the risks and specificities of the respective financial services sector, take into account internationally agreed standards, and focus on four key areas:

Or. en




a. modernisation; a. modernisation and compliance with international standards, such as the Basel Committee on Banking Supervision Standard 239;

Or. en




a. modernisation; a. modernisation and compliance with international standards regarding risk assessment and reporting;

Or. en


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a. modernisation; a. modernisation of ICT governance and risk management;

Or. en


Motion for a resolutionParagraph 16 – point d


d. oversight of critical ICT third-party providers;

d. oversight of and minimum standards for critical ICT third-party providers;

Or. en


Motion for a resolutionParagraph 16 – point d a (new)


da. risk management and governance in the area of ICT;

Or. en



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Paragraph 16 – point d a (new)


da. data integrity and security;

Or. en




17. Stresses the need for further information sharing, in particular on incidents, and enhanced coordination between relevant regulatory and supervisory authorities;

17. Stresses the need for further information sharing, in particular on incidents, and enhanced coordination between relevant regulatory and supervisory authorities, taking into account that building resilience and preparedness to deal with large scale cyber and operational incidents requires effective cooperation not only cross-borders but also across various sectors;

Or. en





17. Stresses the need for further information sharing and enhanced coordination among regulatory and supervisory authorities, in particular on cyber incidents, whereby the focus should be on incidents of material importance rather than attempting to capture all possible events regardless of their impact;

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Or. en





17. Stresses the need for further information sharing, in particular on incidents, and enhanced coordination between relevant regulatory and supervisory authorities; asks the Commission to explore ways to facilitate and encourage information sharing;

Or. en




17a. Calls on the Commission to strengthen the currently limited and scattered outsourcing rules in financial legislation, namely by introducing and adapting in the EBA/EIOPA Guidelines on outsourcing as obligations on all financial institutions; Stresses that the legislative proposal should grant supervisors certain powers to supervise more effectively the activities provided by third parties (third party service providers, TPPs, namely enhanced inspection rights, audit rights and sanctioning rights); Takes the view that, while responsibility for compliance lies with the financial operators, the oversight of critical TTPs should aim at monitoring concentration

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risk, financial stability risks and ensuring cooperation with relevant authorities; Calls on the Commission to propose legislation to set out minimum standards for cybersecurity to be complied with by intermediaries who offer custodial services for crypto-assets like exchanges and storage providers;

Or. en

Amendment 288Ondřej Kovařík, Martin Hlaváček, Engin Eroglu, Caroline Nagtegaal, Stéphanie Yon-Courtin, Luis Garicano, Olivier Chastel, Billy Kelleher



17a. Calls on the Commission to enhance cooperation at international fora in order to facilitate the development of international standards as regards cloud computing and out-sourcing; points out that international standards developed in these areas could then be adopted into an EU-specific framework in order to bring oversight of cloud computing and outsourcing into line with the level of oversight of legacy systems;

Or. en

Amendment 289Gunnar Beck, Francesca Donato, Valentino Grant, Jörg Meuthen, Maximilian Krah, Antonio Maria Rinaldi



17a. Regrets that the supervisory negligence preceeding the downfall of

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Wirecard suggests that FinTechs profit from preferential treatment by supervisory authorities; regrets that the European institutions, including the European Parliament, has contributed in creating a hype around FinTechs; calls on national and European authorities to curb their enthusiasm when promoting FinTech;

Or. en




17a. Stresses that the resilience of the financial system requires a strong technological framework for the supervision of advanced technological applications in financial services; underscores the need for a concrete strategy that enhances the use of regulatory technology (RegTech) and supervisory technology (SupTech);

Or. en




17a. Calls on the Commission, in the absence of traditional forms of supervision, safeguards and regulatory protection and given the potential high volatility of virtual currencies and the risk of speculative bubbles, to introduce

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monitoring of some kind;

Or. fr




17b. Underscores that not all the European and National supervisory authorities are in the same technological level regarding their sophistication in addressing advanced technological challenges; advices EC to create a framework that addresses these gaps by assisting National Authorities to modernize their operations and improve the skills of their personnel; notes that collaboration between national authorities can be enhanced with digital applications both horizontally between the member states and vertically in cases of dual-supervision within a member state;

Or. en




17b. Stresses the need, in order to enhance operational resilience and market integrity, for establishing clear requirements for trading platforms, as regards in particular, depending on the nature and size, robust governance

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arrangements, including risk-based capital requirements and adequate processes and controls against hacking or theft, due diligence requirements, assets segregation, adequate complaints handling and redress procedures to deter market abuses, as well as screening processes against the risk of fraud and manipulation;

Or. en




17b. Calls on the Commission and supervisors to put in pace non-legislative actions to bolster the operational preparedness in the financial sector to deal with large-scale cyber and operational incidents, through joint exercises, operational protocols (“playbooks”), secure collaboration tools and investments in reinforcements of critical infrastructures and European redundancy capacities; highlights the need for supervisors to have in-house expertise and adequate resources to carry out such exercises and supervisory actions;

Or. en



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17b. Calls on the Commission to assess and monitor the risk of trading opportunities on the ‘black market’ emerging, and of money laundering, the financing of terrorism, tax fraud and evasion and other criminal activities;

Or. fr




Data Data and Open Finance

Or. en




18. Recalls that the collection and analysis of data play a central role for FinTech, and therefore highlights the need for consistent, technology-neutral application of existing data laws;

18. Recalls that the collection and analysis of data play a central role for FinTech, and therefore highlights the need for consistent, technology-neutral application of existing data laws; highlights that Artificial Intelligence is one of the key technologies as regards enhancing the Union's competitiveness on a global level;

Or. en

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18. Recalls that the collection and analysis of data play a central role for FinTech, and therefore highlights the need for consistent, technology-neutral application of existing data laws;

18. Recalls that the collection and analysis of data play a central role for FinTech, and therefore highlights the need for consistent application of existing data laws;

Or. en




19. Points out that the Union is the global standard setter as regards personal data protection; highlights that the transfer and use of personal and non-personal data in the financial services sector should meet all relevant standards while allowing for the flow of data needed to scale up innovative finance initiatives;

19. Points out that the Union is the global standard setter as regards personal data protection; highlights that the transfer and use of personal and non-personal data in the financial services sector should be in accordance with fundamental rights, relevant legislation and international agreements and allow for the flow of data needed to scale up innovative finance initiatives to be guaranteed in a lawful and secure manner;

Or. en



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19. Points out that the Union is the global standard setter as regards personal data protection; highlights that the transfer and use of personal and non-personal data in the financial services sector should meet all relevant standards while allowing for the flow of data needed to scale up innovative finance initiatives;

19. Points out that the Union is the global standard setter as regards personal data protection; highlights that the transfer and use of personal and non-personal data in the financial services sector should adhere to these principles while allowing for the flow of data needed to scale up innovative finance initiatives;

Or. en

Amendment 301Ondřej Kovařík, Martin Hlaváček, Engin Eroglu, Caroline Nagtegaal, Stéphanie Yon-Courtin, Luis Garicano, Billy Kelleher



19a. Stresses that the free flow of data within the EU is needed to scale up innovative finance; points out that cross-border data flows, including to and from third countries, must be monitored and governed by EU legislative principles on data privacy and data protection;

Or. en




19a. Concerns about the lack of a proper EU framework for data providers. Enhance to take actions to avoid EU suffering a non-EU data providers’ oligopolistic concentration due to its data

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dependency;

Or. en

Amendment 303Eero Heinäluoma, Pedro Marques, Alfred Sant, Jonás Fernández, Paul Tang, Aurore Lalucq



20. Requests, in this regard, that the Commission examines how to ensure that digital finance entities can access on an equitable basis relevant and useful data to help ensure that innovative FinTech businesses can grow within the Union and beyond;

20. Requests, in this regard, that the Commission examines how to ensure that digital finance entities can access on an equitable basis relevant and useful data to help ensure that innovative FinTech businesses can grow within the Union and beyond; calls on the Commission to monitor the offering of financial services by “BigTech” firms, and also how the competitive advantages inherent to these operators may distort competition in the market, harm the interests of consumers and innovation;

Or. en





20. Requests, in this regard, that the Commission examines how to ensure that digital finance entities can access on an equitable basis relevant and useful data to help ensure that innovative FinTech businesses can grow within the Union and beyond; points out though that the Commission should refrain from price

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regulation for access to private data streams;

Or. en





20. Requests, in this regard, that the Commission examines how to ensure that digital finance entities can access on an equitable basis relevant and useful data to help ensure that innovative FinTech businesses can grow within the Union and beyond, guaranteeing the protection of its consumers’ data on EU territory;

Or. en





20. Requests, in this regard, that the Commission examines how to ensure that digital finance entities can access on an equitable basis relevant and useful data, to foster the potential of digital finance and to provide the opportunities for innovative FinTech businesses to grow within the Union and beyond;

Or. en

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20. Requests, in this regard, that the Commission examines how to ensure that digital finance entities can access on an equitable basis relevant and useful data to help creating more customer value and ensure that innovative FinTech businesses can grow within the Union and beyond;

Or. en





20. Requests, in this regard, that the Commission examines how to ensure that digital finance entities can access on an equitable basis relevant, reliable and useful data to help ensure that innovative FinTech businesses can grow within the Union and beyond;

Or. en

Amendment 309Billy Kelleher, Ondřej Kovařík, Engin Eroglu, Martin Hlaváček



20a. Highlights the need for the

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Commission to strike a balance between ensuring data security and consumer protection with maintaining the consumer experience and service efficiency;

Or. en




20a. Calls on the Commission to actively promote open-source software and their role in cyber resilience, especially for their inherently high levels of transparency;

Or. en




20b. Calls on the Commission to actively promote use of open source hardware and to actively work in promoting European autonomy in producing software with transparent features; underlines that European reliance on third party hardware manufacturers is a long term security liability, especially in connection with digital finance;

Or. en

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21. Requests that the Commission consider a framework for digital onboarding and the use of digital financial identities, which would aim to harmonise these measures across the Union insofar as necessary;

21. Requests that the Commission consider a framework for digital onboarding and the use of digital financial identities, which would aim to harmonise these measures across the Union insofar as necessary; highlights the importance of and potential benefit from enabling the use of digital financial identities across all sectors and Member States, while taking appropriate and proportionate measures to avoid data or identity incidents;

Or. en





21. Requests that the Commission consider a framework for digital onboarding and the use of digital financial identities, which would aim to harmonise these measures across the Union insofar as necessary, highlights the need in this framework to balance greater data-sharing and transparency with data security and consumer privacy;

Or. en

Amendment 314

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Eva Kaili




21. Requests that the Commission consider a framework for digital onboarding and the use of digital financial identities, which would aim to a harmonised regime across the Union insofar as necessary for smooth and unfragmented operations within the Single Market;

Or. en





21. Requests that the Commission consider a framework for digital onboarding and the use of digital financial identities, which would aim to harmonise these measures across the Union insofar as necessary and facilitates compliance with the relevant anti-money laundering provisions;

Or. en

Amendment 316Ondřej Kovařík, Martin Hlaváček, Engin Eroglu, Caroline Nagtegaal, Billy Kelleher, Stéphanie Yon-Courtin


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21. Requests that the Commission consider, based on the existing EU standard eIDAS, an infrastructure for digital onboarding and the use of digital financial identities, which would aim to harmonise these measures across the Union insofar as necessary;

Or. en





21. Requests that the Commission considers a framework for digital onboarding and the use of digital financial identities, which would aim to harmonise the existing regulatory requirements across the Union and to facilitate the use of such measures;

Or. en




21a. Points out that for KYC processes legal requirements for retail onboarding by financial institutions are different in every member state and therefore cross border onboarding with existing data sets are often not possible, which is also valid

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for onboarding of corporate clients and its related KYC/KYB (know your business) process; calls on the Commission to address this issue and foster the harmonisation of the KYC data required by member states;

Or. en




21a. Acknowledges that interoperability between digital entities on national and European level is key in order to reach the desired market acceptance;

Or. en




22. Points out that customer data or “big data” is being increasingly used by financial institutions; recalls the provisions of Article 71 of the GDPR and calls on all stakeholders to increase efforts to guarantee the enforcement of the rights therein;

22. Points out that customer data or “big data” is being increasingly used by financial institutions; reiterates the conclusions and recommendations from its Resolution of 14 March 2017 on fundamental rights implications of big data: privacy, data protection, non-discrimination, security and law-enforcement; recalls the legislative framework for processing of personal data provided by the GDPR and calls on all stakeholders to ensure the enforcement of the rights therein; highlights, in particular,

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the principle regarding the individuals’ right to own and control over their data and the right to data portability;

Or. en





22. Points out that customer data or “big data” is being increasingly used by financial institutions; recalls the provisions of Article 71 of the GDPR and calls on all stakeholders to increase efforts to guarantee the enforcement of the rights therein; believes that GDPR requirements should be stricter for non-EU financial institutions and intermediaries buying, selling, compiling and analysing big data;

Or. en





22. Points out that customer data or “big data” is being increasingly considered as key for creating additional customer value and maintain competitiveness by financial institutions; recalls the provisions of Article 71 of the GDPR and calls on all stakeholders to increase efforts to guarantee the enforcement of the rights therein;

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Or. en





22. Points out that customer data or “big data” is being increasingly used by financial, banking and insurance industries; recalls the provisions of Article 71 of the GDPR and calls on all stakeholders to increase efforts to guarantee the enforcement of the rights therein;

Or. en

Amendment 324Ondřej Kovařík, Martin Hlaváček, Engin Eroglu, Caroline Nagtegaal, Billy Kelleher, Olivier Chastel



22a. Considers that a self-sovereign identity (SSI) based on distributed ledger technologies (DLT) can be a key element in developing a range of new services and platforms for the digital single market, independent from data aggregators and avoiding intermediaries, while at the same time providing high security and data protection standards for individual EU citizens;

Or. en

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23. Believes that the lack of accessible data and information regarding FinTech activities can be a detriment to growth; advocates for increased transparency and enhanced reporting of FinTech activity so as to reduce asymmetries and risks;

23. Believes that the lack of accessible data and information regarding FinTech and crypto-assets related activities can be a detriment to consumer protection, market integrity and financial stability as well as to the fight against money laundering and terrorism financing, tax evasion and tax avoidance; advocates for increased transparency and enhanced reporting requirements of FinTech and crypto-assets activity so as to reduce asymmetries and risks; further calls for the adoption of specific rules on market transparency and integrity;

Or. en





23. Believes that both the lack of accessible data and information regarding FinTech activities as well as overburdening enterprises, supervisors and regulators with elaborate reporting requirements, like we have seen following the implementation of MiFID II, can be a detriment to growth; advocates for increased transparency and equitable reporting of FinTech activity so as to reduce asymmetries, risks and compliance costs;

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Or. en





23. Believes that the lack of accessible data and information regarding FinTech activities can be a detriment to growth; advocates for increased transparency and enhanced reporting of FinTech activity so as to reduce asymmetries and risks in particular regarding incumbent big data operators that may draw disproportionate benefits from increased access to data;

Or. en





23. Believes that the lack of sufficient investments and upgrades in critical IT-infrastructure and software platforms and the lack of accessible data and information regarding FinTech activities can be detrimental to growth; advocates for increased transparency and enhanced reporting of FinTech activity so as to reduce asymmetries and risks;

Or. en

Amendment 329

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Eva Kaili




23. Believes that the lack of access to reliable data and information regarding FinTech activities can be a detriment to growth; advocates for increased transparency and enhanced reporting of FinTech activity so as to reduce asymmetries and risks;

Or. en




23a. Points out that in this context standards play a key role in further promoting data management, sharing and exchange, including data interoperability and portability. It also requires a trustworthy and legally secure infrastructure as well as a sound legal framework with regard to data pooling and sharing that give businesses confidence in data cooperation on a cross-company or even cross-industry basis;

Or. en

Amendment 331Eero Heinäluoma, Pedro Marques, Alfred Sant, Jonás Fernández, Paul Tang


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24. Calls for effective oversight of ’big data’ analytics in a way that addresses the opacity of models while ensuring that there is sufficient access to relevant and quality data;

24. Calls for effective oversight of ’big data’ analytics in a way that addresses the opacity of models while ensuring that there is sufficient access to relevant and quality data; emphasises the need for much greater algorithmic accountability and transparency with regard to data processing and analytics as an essential tool to guarantee that the individual is appropriately informed about the processing of their personal data; calls on the Commission to assess which initiatives, legislative and non-legislative, can be taken in this regard;

Or. en




24a. Calls for a workable regulatory approach to data processing and management, where consumer protection is a priority for legislators, while adapting European Data protection law to the requirements of a modern data economy that puts data sovereignty into reality;

Or. en



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24a. Calls for efforts focused on preserving a level playing field based on cross-borders data access, and a high level of consumers’ data protection and privacy, converging EU a framework with high standards of cybersecurity;

Or. en




24a. Calls for data collected and generated with public funds to be considered open data and be made available in a standardised and comparable format unless GDPR provisions prohibit doing so;

Or. en




24a. Calls for transparency of algorithms used by the financial sector, as appropriate, and supervisory disclosure of these;

Or. en

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24b. Economic, environmental and social implicationsHighlights the challenges and risks for financial stability and monetary transmission posed by the emergence of stablecoins with potential for global reach and mass adoption, including shifting the control of monetary policy from central banks to private companies without any accountability; welcomes in this regard the commitment of the Commission and the Council, in line with the actions taken at international level, to identify and address the legal, regulatory and oversight challenges and potential systemic risks posed by global stablecoins and other similar arrangements, before such projects can commence their operations in the EU;

Or. en




24c. Economic, environmental and social implicationsIs concerned about the high environmental impact of crypto-mining based on proof of work protocols, such as Bitcoin; points out that, according to a

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benchmarking study presented by the Cambridge Centre for Alternative Finance, the energy consumption used by Bitcoin equals that of the whole country of Switzerland; stresses the need for new solutions aimed at mitigating the ecological footprint of mainstream crypto-assets and to ensure the shift towards energy efficient solutions, including the reuse of heat generated for other uses;

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24d. Economic, environmental and social implicationsPoints out that, despite the original promise of leading to decentralisation, democratisation and reducing economic inequalities, crypto-assets have been, on the contrary, associated with high levels of wealth concentration, while most crypto-assets trading occurs on centralized exchanges vulnerable to hacking and frauds;

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24e. Economic, environmental and social implicationsUnderlines the potential benefits of introducing a Euro virtual currency to provide cheaper, faster and more secure transactions to European citizens, while ensuring that competent authorities are equipped with the adequate tools to prevent illegal activities; invites the ECB to consider to undertake a comprehensive impact assessment regarding the possibility of introducing a Euro virtual currency;

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25a. Stresses that the challenge of big data and data analytics is the distinct characteristic of digital finance; Underlines the importance of Open Banking in improving the quality of payments services by the inclusion of new market participants that provide increased operational and price efficiency to the consumers;

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25b. Underlines that a transition from Open Banking to Open Finance – the inclusion of financial services other than payments, is a strategic priority for an inclusive and holistic approach in the European markets that is expected to improve efficiency, reduce concentration risks, enhance financial inclusion and democratize finance;

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25c. Notes that the financial data belong to the citizens and cannot be sold or used by the financial service providers without the explicit consent of the consumer; Strong penalties should be imposed when violations on data privacy occur;

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25d. Highlights that the scalability of the European financial services requires the flow of data between the financial service providers if the consumer requires so; Legacy financial service providers should cooperate with innovative FinTech firms in the flow of financial and

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transaction data subject to the consent of the customer; Calls to the commission to ensure that this flow of data will be possible in a frictionless and efficient way;

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Motion for a resolutionAnnex I – part A – point 1


1. To set the groundwork for a future-oriented approach to rules concerning digital finance in the Union;

1. To set the groundwork for a future-oriented approach to a more innovation-friendly regulatory framework concerning digital finance in the Union;

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2. To ensure that digital finance can continue to be an innovative driver of growth and jobs across the single market;

2. To create a framework that allows digital finance is an innovative driver of growth and jobs across the single market in a safe and regulated environment with high standards for consumer/investor protection and market integrity;

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2. To ensure that digital finance can continue to be an innovative driver of growth and jobs across the single market;

2. To ensure that digital finance does not pose any systemic threats to the economy;

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Motion for a resolutionAnnex I – part A – point 2 a (new)


2a. To ensure that activities from the field of digital finance that are economically similar to regulated activities under the current legislative framework are held to the same standards, thereby minimising the potential for regulatory arbitrage and facilitating competition on a level playing field;

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Motion for a resolutionAnnex I – part A – point 2 a (new)


2a. To ensure that the classification of FinTech companies and payment companies is correct;

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Or. en




3. To foster a common understanding of the key issues concerning digital finance and encourage the harmonisation of relevant provisions, which will lead to enhanced cross border activity;

3. To foster a common understanding of the key issues concerning digital finance and ensure the harmonisation of relevant provisions, which will lead to enhanced cross border activity;

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3. To foster a common understanding of the key issues concerning digital finance and encourage the harmonisation of relevant provisions, which will lead to enhanced cross border activity;

3. To foster a common understanding of the key issues concerning digital finance and encourage the harmonisation of relevant provisions, in order to increase financial stability in the EU;

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4. To increase data sharing in accordance with Union principles in order to stimulate innovation. The aim should be to facilitate access to public data across the Union. This would not only benefit digital finance companies, but would also be to the benefit of a number of other Union policy areas and increase market transparency;

4. To increase data sharing, data integrity and security in accordance with Union principles in order to enhance consumer protection and market integrity . The aim should be to facilitate access to public data across the Union, while ensuring compliance with data protection and data security standards. This would not only benefit digital finance companies, but would also be to the benefit of a number of other Union policy areas and increase market transparency;

Or. en




4. To increase data sharing in accordance with Union principles in order to stimulate innovation. The aim should be to facilitate access to public data across the Union. This would not only benefit digital finance companies, but would also be to the benefit of a number of other Union policy areas and increase market transparency;

4. To increase data sharing in accordance with Union principles in order to stimulate innovation. The aim should be to facilitate access to data across the Union guaranteeing a secure and consumers’ data protection framework. This would not only benefit digital finance companies and SMEs, but would also be to the benefit of a number of other Union policy areas and increase market transparency;

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Motion for a resolutionAnnex I – part B – point -1 (new)


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-1. To ensure that until a EU taxonomy is available, regulated and licensed financial institutions should be subject to a temporary ban of crypto-assets related activities with the exception of small scale or prototype activities subject to approval by competent authorities, in consideration of the high risks to consumer and investors protection, financial stability, and market integrity and reputation; points out that once such taxonomy is established in EU law, such institutions should carry out activities related to high-risk crypto-assets only subject to strong safeguards and tight limits, based on an assessment of the potential risk of the activities under the most conservative assumptions. Meanwhile, all agents and participants entering into transactions above a 'de minimis' threshold in crypto-assets related activities outside of the scope of the regulated and licensed financial institutions should be subject to the standards of the existing regulatory framework including AML/CFT, KYC, PSD2, MiFID, Market Abuse Regulation, Short Selling Regulation, Prospectus Regulation, Central Securities Depositories Regulation, EMIR and UCITS, as applicable;

Or. en


Motion for a resolutionAnnex I – part B – point 1


1. To put forward a legislative proposal for Crypto-Assets, which provides legal certainty for the treatment of Crypto-Assets while ensuring consumer and

1. To put forward a legislative proposal for Crypto-Assets, which provides legal certainty for the treatment of Crypto-Assets while ensuring high standards of

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investor protection. Such a framework should consider an open taxonomy and aim to legislate according to the principle of the same rules applying according to the same activity and risks;

consumer and investor protection, market integrity and financial stability. Such a framework should consider a comprehensive and an open taxonomy, and aim to legislate according to the principle of the same rules applying according to the same activity and risks, both among crypto-assets as well as vis-à-vis traditional financial services. Moreover, such framework should:(a) be based on the principle of proportionality and of an adequate regulation of providers based on principles that are already in use in financial services;

(b) ensure that crypto-assets that are economically similar to traditional securities, and all involved agents, are subject to existing securities markets regulations, in particular MiFID, Short Selling Regulation, Market Abuse Regulation and Prospectus Regulation, as applicable;(c) ensure that crypto-assets that are economically equivalent to traditional collective investment undertakings, and all involved agents, are subject to existing funds regulation, in particular UCITS, AIFMD and MFF, as applicable;(d) ensure that crypto-assets that are economically equivalent to traditional e-money, and all involved agents, are subject to existing payments regulation, in particular the E-Money Directive and PSD, as applicable;(e) ensure that stablecoins meet at least the standards of the E-Money Directive, in particular with regards to their redeemability at par, complemented by additional requirements to account for their potential systemic relevance;(f) consider any crypto-assets that do not belong to one of the categories above as high-risk crypto-assets;(g) ensure the adoption of specific rules on market transparency and integrity at

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least equivalent to those of MIFID for issuers or sponsors of crypto-assets;(h) ensure all crypto-assets service providers, including trading platforms and ICOs, are subject to AML/CTF obligations, as regards in particular conducting customer due diligence and KYC, record keeping and reporting of suspicious transactions to the competent authorities and FIUs. Crypto-assets providers shall not use or tolerate any techniques (such as cryptocurrency tumblers or mixers) that would undermine their ability to meet their AML/CFT requirements;(i) ensure that Virtual Assets Service Providers (VASP) operating in the EU are subject to mandatory registration or licensing requirements with the competent authorities before conducting business within the EU, including the obligation to appoint a resident executive director and have substantive management presence in the jurisdiction of registration. The VASP shall be required to seek prior approval by the competent authorities for substantive changes in shareholders, business operations and structures, to prevent criminals from owning or holding a significant controlling interest or management function in a VASP and ensure the fitness and properness of directors, managers and shareholders;(j) appoint a single European supervisor for oversight and registration of all crypto-assets related activities in the European Union, based on a common rulebook;(k) include legal provisions and mechanisms to ensure that the regulatory standards for crypto-assets related activities, in particular regarding consumer protection and AML/CFT, are also enforced when such activities or services are provided or operated from outside the European Union;

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1. To put forward a legislative proposal for Crypto-Assets, which provides legal certainty for the treatment of Crypto-Assets while ensuring consumer and investor protection. Such a framework should consider an open taxonomy and aim to legislate according to the principle of the same rules applying according to the same activity and risks;

1. To put forward a legislative proposal for Crypto-Assets, which provides legal certainty for the treatment of Crypto-Assets while ensuring consumer and investor protection, market integrity and financial stability. Such a framework should consider an agile open-ended taxonomy that will allow the scope to be clearly defined and aim to legislate according to the principle of the same rules applying to the same activity and risks, taking under consideration underlying technology specific risks; should address the different methodologies used related to metrics for crypto-asset networks, coverage and estimates of market data such as capitalisation, prices and trading volumes on crypto-exchanges, to name a few;

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1. To put forward a legislative proposal for Crypto-Assets, which provides legal certainty for the treatment of Crypto-Assets while ensuring consumer and investor protection. Such a framework

1. To put forward a legislative proposal for Crypto-Assets, including stablecoins, which provides legal certainty for the treatment of Crypto-Assets while ensuring consumer and investor protection.

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should consider an open taxonomy and aim to legislate according to the principle of the same rules applying according to the same activity and risks;

Such a framework should consider an open taxonomy and aim to legislate according to the principle of the same rules applying according to the same activity and risks while taking due account of ensuring a high level of investor protection, ensuring financial stability and the possible implications for the transmission of monetary policy operations;

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1. To put forward a legislative proposal for Crypto-Assets, which provides legal certainty for the treatment of Crypto-Assets while ensuring consumer and investor protection. Such a framework should consider an open taxonomy and aim to legislate according to the principle of the same rules applying according to the same activity and risks;

1. To put forward a legislative proposal for Crypto-Assets, which provides legal certainty for the treatment of Crypto-Assets while ensuring a level playing field and tackling the most serious risks in order to protect consumers and investors; such a framework should consider an open taxonomy and aim to legislate according to the principle of the same rules applying according to the same activity and risks;

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Motion for a resolutionAnnex I – part B – point 1 a (new)


1a. To strengthen the application of the AML/CTF framework to crypto-assets and close the existing loopholes, in

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particular:(a) adopt a comprehensive definition of crypto-assets;(b) update the definition of terrorist financing to also include assets or property within the scope;(c) incorporate under AML/CTF obligations other categories of crypto-assets service providers, namely providers of virtual-to-virtual exchanges, other categories of wallet and ICOs;

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1a. To ban all cryptocurrencies from the Union, given their highly speculative nature and the risks they pose to the stability of the financial system;

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2. To make a legislative proposal on cyber resilience, which ensures consistent standards of ICT security across the Union financial sector. Such a framework should be future-oriented and focus on modernising the current rules applicable

2. To make a legislative proposal on cyber resilience, which ensures consistent standards of ICT security across the Union financial sector. Such a framework should be future-oriented and focus on modernising the current rules applicable

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concerning cyber resilience, while also closing any regulatory loopholes and gaps, which may put businesses, investors and consumers at risk;

concerning cyber resilience, while also closing any regulatory loopholes and gaps, which may put businesses, investors and consumers at risk; crypto-assets trading platforms should be subject to robust governance arrangements, including risk-based requirements and adequate processes and controls against hacking or theft, due diligence requirements, assets segregation, adequate complaints handling and redress procedures to deter market abuses, as well as screening processes against the risk of fraud and manipulation;

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2. To make a legislative proposal on cyber resilience, which ensures consistent standards of ICT security across the Union financial sector. Such a framework should be future-oriented and focus on modernising the current rules applicable concerning cyber resilience, while also closing any regulatory loopholes and gaps, which may put businesses, investors and consumers at risk;

2. To make a legislative proposal on cyber resilience, which ensures consistent standards of ICT security across the Union financial sector. Such a framework should be future-oriented and focus on modernising the current rules applicable concerning cyber resilience, while also closing any regulatory loopholes and gaps, which may put businesses, investors and consumers at risk. Such a proposal should take due account of the risk of concentration and contagion stemming from the over reliance on a small number of ICT service providers, particularly cloud computing providers;

Or. en

Amendment 362

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Stéphanie Yon-Courtin, Gilles Boyer, Olivier Chastel




2. To make a legislative proposal on cyber resilience, which ensures consistent standards of ICT security across the Union financial sector. Such a framework should be future-oriented and focus on modernising the current rules applicable concerning cyber resilience, while also closing any regulatory loopholes and gaps, which may put businesses, investors and consumers at risk. Such a framework should aim to limit over reliance on non-EU ICT services providers, and on ICT products and services offered by non-EU market participants;

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2. To make a legislative proposal on cyber resilience, which ensures consistent standards of ICT security across the Union financial sector. Such a framework should be future-oriented and focus on modernising the current rules applicable concerning cyber resilience, while also closing any regulatory loopholes and gaps, which may put taxpayers, businesses, investors and consumers at risk;

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3. To propose a framework for digital onboarding. Such a framework should comply with relevant Union legislation such as Anti-Money Laundering provisions and aim to ensure a common understanding of digital financial identities across the single market.

3. To propose a framework for digital onboarding. Such a framework should comply with relevant Union legislation such as Anti-Money Laundering provisions and anti-terrorist financing, and aim to ensure a common understanding of digital financial identities across the single market.

Or. fr




3a. To assess the potential impact of vulnerabilities caused by financial institutions' growing use of new technologies and the rapid evolution of the crypto-asset market;

Or. fr

AM Com NonLegReport · 2020. 7. 20. · AM\1209528EN.docx PE654.084v01-00 ENUnited in diversityEN...

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