Mairead McGuinness, Commissioner for Financial Services, Financial Stability and Capital Markets Union at the European Commission, is advancing the crypto regulation debate amid three major developments in the space.
In written remarks for a speech in Brussels on Tuesday, McGuinness said that the Celsius Network, which recently suspended withdrawals, as well as the crash of Terra (LUNA) show the need for regulation of crypto assets in the European Union. He added that current concerns about the possibility of cryptocurrencies being used to circumvent sanctions placed on Russia are also a factor.
“It is necessary to regulate all crypto assets – whether they are unbacked crypto assets or so-called ‘stablecoins’ – and crypto asset service providers”McGuinness said. “Enforcement of sanctions could be made easier if our framework on cryptocurrencies were in place, and if all crypto asset service providers were regulated entities and subject to effective supervision in the European Union.”
The EU commissioner added that she planned to discuss a “political compromise” with the French government through the Crypto Asset Markets, or MiCA, proposal, which is currently under review by the European Parliament, European Commission and European Council:
“The MiCA rules will be the right tool to address concerns about consumer protection, market integrity and financial stability. This is something that is very urgent given recent developments.”
#EU2022FR | Today, #trilogue on the regulation on Markets in crypto-assets #Mica https://t.co/cvyS8Xh9vZ
— French Presidency of the EU Council (@Europe2022FR) June 14, 2022
According to the MiCA draft proposal, all crypto companies providing services in the European Union will likely be subject to the same rules. The move was initially delayed due to concerns over a potential Proof-of-Work cryptocurrency ban, but it came out of commission in March.
In addition to its work on the regulation of digital assets in the EU, the Commission will on Thursday close a consultation launched in April for financial services specialists to weigh in on the possible rollout of a central bank digital currency. In May, McGuinness said the European Commission was “ready” to introduce digital euro legislation.
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