It is why the Association for Financial Markets in Europe (AFME) responded to the European Commission’s public consultation on the EU’s Framework for Markets and Crypto-Assets in 2020 by recommending that the Commission applies the principle of ‘same activity, same risk, same regulation’ to foster a level playing field.xx
This response, as well as others from the industry,xxi also emphasises the need to establish a taxonomy for digital assets, differentiating between different types of assets, and their functionality, when making recommendations for their regulation and oversight.
Taxonomy
Taxonomy is important because, as new markets develop, and operational functions become self-learning and self-functioning, and with the integration of data becoming far easier, the issue of standardisation will be paramount.